Report alleges Chesapeake Encana combined to supress land prices by Brian Grow, Joshua Schneyer and Janet Roberts, June 25, 2012, Reuters
That exchange – and a dozen other e-mails reviewed by Reuters – could provide evidence that the two companies violated federal and state laws by seeking to keep land prices down, antitrust lawyers said. … In response to questions from Reuters, Encana said it was undertaking an internal investigation, saying it “is committed to conducting its business in an ethical and legal way.” … Private industry cartels are forbidden in the United States, where price-fixing between competitors is illegal under the Sherman Antitrust Act. Companies can be fined up to $100-million and individuals up to $1-million for each offense. Victims can also seek triple the amount of damages. Antitrust lawyers said the fact that the companies discussed a formal joint venture wouldn’t dispel legal concerns. “Nothing in the documents suggests any benefit to the joint venture other than making the price fall,” said Darren Bush, a former attorney in the Antitrust Division of the Department of Justice and a law professor at the University of Houston. “If it has no other purpose, then it’s just a shell and doesn’t change the liability for illegal conduct.”
Report alleges Chesapeake Encana combined to supress land prices
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