Goldman Sachs, BASF, and Banks to Pay $20 Million to Settle Antitrust Lawsuit Over Metal Price Manipulation

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Goldman Sachs, German industrial giant BASF, and two other financial institutions have reached a $20 million settlement to resolve a nearly decade-long antitrust lawsuit. The lawsuit accused these entities of conspiring to manipulate prices for platinum and palladium, key metals used in various industries including automotive, dentistry, and jewelry.

The preliminary settlement, filed late Friday, has been approved by U.S. District Judge Gregory Woods in Manhattan, as documented in court records released on Monday. The defendants in this case include Goldman Sachs, BASF, HSBC, and London-based ICBC Standard Bank. Although they have agreed to the settlement, all four parties deny any wrongdoing.

The lawsuit alleges that from January 1, 2008, to November 30, 2014, the defendants engaged in illicit practices to suppress the prices of platinum and palladium. The accusations include sharing sensitive customer data, front-running anticipated price movements, and placing deceptive “spoof” orders that misled the market. These actions were purportedly aimed at reducing the cost of metals for the banks and their clients and minimizing losses on short positions held in futures markets.

The metals in question—platinum and palladium—are essential for reducing vehicle emissions in catalytic converters, as well as for use in dentistry and jewelry. The plaintiffs, who are purchasers of these metals and their futures contracts, claimed that the alleged manipulations allowed the banks to benefit financially at the expense of fair market pricing.

Legal representatives for the plaintiffs have described the settlement as an “excellent” outcome that is fair, reasonable, and adequate. They intend to request up to one-third of the settlement amount, approximately $6.67 million, for legal fees, in addition to up to $600,000 for expenses.

Final approval of the settlement is anticipated in January. This lawsuit is part of a broader series of cases in the Manhattan court where major banks are accused of colluding in various markets, including interest rate benchmarks, U.S. Treasuries, currencies, and commodities.