Four major European and U.S. flavor and fragrance producers are facing a growing number of price-fixing lawsuits in U.S. court, after Swiss and other antitrust authorities revealed a cartel investigation earlier this year.
A prospective class action filed in federal court in New Jersey on Thursday by a pair of big U.S. plaintiffs firms is the latest of at least nine cases against Swiss companies Givaudan and Firmenich, which is merging with Dutch chemicals group DSM; U.S.-based International Flavors & Fragrances; and Germany’s Symrise.
The lawsuits, filed on behalf of direct and indirect fragrance purchasers, followed the European Commission’s announcement in March that antitrust authorities had raided Symrise, Givaudan and Firmenich. Inspectors said they carried out their inquiries in consultation with the U.S. Justice Department and the UK Competition and Markets Authority.
The U.S. lawsuits contend the companies conspired to divide up the production of synthetic and natural ingredients used to make fragrances in products such as detergents, cosmetics and perfumes.
In the latest case, law firm Quinn Emanuel Urquhart & Sullivan, working with Cohen Milstein Sellers & Toll, sued on behalf of Texas-based Crimson Candle Supplies and other businesses that sell scented products.
Other plaintiffs include Pennsylvania hair-care and cosmetics company Cospro Development; and Arkansas-based Hanna’s Candle. Hanna’s described itself in its complaint as one of the country’s largest candle companies.
“All defendants consistently increased their prices and faced no repercussions for doing so,” lawyers for Crimson Candle wrote in Thursday’s complaint.
Firmenich on Friday said it “will vigorously defend these cases.”
Symrise said it has asked the Luxembourg-based General Court, Europe’s second-highest, to void the European Commission’s decision ordering the raids. The commission, Symrise said, did not have a sufficient basis to suspect any violation of competition law.
International Flavors & Fragrance in a statement declined to comment on specific matters but said it took the allegations “very seriously” and was “working closely with relevant authorities.”
A representative from Givaudan did not immediately respond to a message seeking comment.
The companies are represented by large U.S. corporate defense firms, including Skadden, Arps, Slate, Meagher & Flom for International Flavors & Fragrances; White & Case for Symrise; Duane Morris and Davis Polk & Wardwell for Firmenich; and Paul, Weiss, Rifkind, Wharton & Garrison for Givaudan.
Defense attorneys involved in the litigation either referred queries to their clients or did not immediately respond to messages seeking comment.
Other plaintiffs’ firms that filed cases include Hausfeld; Berger Montague; Gustafson Gluek; and Korein Tillery.
The cases in New Jersey federal court are likely to be grouped together before a single judge, and plaintiffs could file an overarching complaint.
Lawyers from Korein Tillery, Hausfeld and Nussbaum Law Group in late June asked a U.S. judge to appoint them as interim leaders of the litigation for direct purchasers.
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