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against Dupont Canada
Certifies Price Fixing Class Action against DuPont Canada on
Behalf of Canadian Plastics Moulders
TORONTO, December 6 / - The
Ontario Superior Court of Justice has certified a class action
against E.I. DuPont Canada Company on behalf of a group of Canadian
manufacturers of plastic parts supplying the automotive industry.
The case is the first of its kind in Canada to be certified as a
claim alleges that DuPont Canada, through its pricing system and
its arrangements with its authorized distributors, set and
maintained the price of specialized resins, known as
‘engineering resins’, at artificially high prices.
action is brought by Axiom Plastics Inc. of Aurora, Ontario.
Axiom moulds plastic parts, which go into automotive
assemblies made by major industry players such as Magna
resins are the single largest component in our sector’s cost of
goods” says Axiom’s president, Perry Rizzo.
believe that DuPont Canada’s actions have harmed the
competitiveness of Axiom and all Canadian plastics manufacturers
competing in the international automotive market.”
the ruling, Justice Alexandra Hoy of the Ontario Superior Court of
Justice found that the main focus of the alleged conspiracy
involved a system of price concessions and rebates granted by
DuPont Canada to its authorized distributors which allowed DuPont
Canada to effectively control the resale price of resins sold by
its independent distributors.
The judge noted the evidence that many of the automotive
parts manufacturers are in dire financial straits and are required
to compete in a fiercely competitive market.
Sterns, one of the lawyers for Axiom, pointed out that the
court’s decision represents the first class action to be
certified involving the beleaguered Canadian auto parts industry.
lawsuit is brought by the law firms of Sotos LLP and McCarthy
Sterns, Sotos LLP, 416-977-0007,
C. Lisus, McCarthy Tétrault LLP, 416-601-7848,
Hoy’s written decision can be viewed here
further documents regarding the case, go to: