Number
151309
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution authorizing the City Attorney to join the City of Milwaukee as a plaintiff in the liquid aluminum sulfate bid rigging and price fixing class action lawsuit of his selection in the District Court of New Jersey or other court of competent jurisdiction, and further authorizing the City Attorney to select and retain outside counsel to represent the City of Milwaukee in such lawsuit.
Analysis
On October 27, 2015 Frank A. Reichl, an employee of General Chemical Corporation, pleaded guilty in a United States Department of Justice criminal investigation for his role in a conspiracy to fix prices, rig bids and allocate customers for liquid aluminum sulfate supplied to municipalities and pulp and paper companies. This resolution authorizes the City Attorney to join the City of Milwaukee as a plaintiff in one of the civil class action lawsuits filed shortly after Mr. Reichl’s guilty plea. As of December 8th, 2015, nine such lawsuits, which may be consolidated in early 2016, have been initiated in the District Court of New Jersey by various plaintiffs on behalf of a nationwide class of direct purchasers of liquid aluminum sulfate. The defendants include General Chemical Corporation, from whom Milwaukee Water Works has purchased liquid aluminum sulfate since at least 1999. This resolution further authorizes the City Attorney to retain outside counsel to represent the City in the class action.
Body
Whereas, Various plaintiffs have filed class action lawsuits in the District Court of New Jersey seeking to recover damages incurred by the nationwide class of direct purchasers of liquid aluminum sulfate due to the defendants’ alleged illegal bid rigging, price fixing, and customer allocation; and
Whereas, Milwaukee Water Works has purchased liquid aluminum sulfate from one of the defendants in these lawsuits, General Chemical Corporation, since at least 1999; and
Whereas, In order to pro...
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