Mark Edward Whitacre is an American business executive who came to public attention in 1995 when, as president of the Decatur, Illinois-based BioProducts Division at Archer Daniels Midland (ADM), he became the highest-level corporate executive in U.S. history to become a Federal Bureau of Investigation (FBI) whistleblower. For three years (1992–95), Whitacre acted as a cooperating witness for the FBI, which was investigating ADM for price fixing. In the late 1990s, Whitacre was sentenced to nine years in federal prison for embezzling $9.5 million from ADM at the same time he was assisting the federal price-fixing investigation.
A cartel is a group of independent market participants who collude with each other as well as agreeing to compete with each other in order to improve their profits and dominate the market. A cartel is an organization formed by producers to limit competition and increase prices by creating artificial shortages through low production quotas, stockpiling, and marketing quotas. Cartels can be vertical or horizontal but are inherently unstable due to the temptation to defect and falling prices for all members. Additionally, advancements in technology or the emergence of substitutes may undermine cartel pricing power, leading to the breakdown of the cooperation needed to sustain the cartel. Cartels are usually associations in the same sphere of business, and thus an alliance of rivals. Most jurisdictions consider it anti-competitive behavior and have outlawed such practices. Cartel behavior includes price fixing, bid rigging, and reductions in output. The doctrine in economics that analyzes cartels is cartel theory. Cartels are distinguished from other forms of collusion or anti-competitive organization such as corporate mergers.
In the United States, antitrust law is a collection of mostly federal laws that regulate the conduct and organization of businesses in order to promote competition and prevent unjustified monopolies. The three main U.S. antitrust statutes are the Sherman Act of 1890, the Clayton Act of 1914, and the Federal Trade Commission Act of 1914. These acts serve three major functions. First, Section 1 of the Sherman Act prohibits price fixing and the operation of cartels, and prohibits other collusive practices that unreasonably restrain trade. Second, Section 7 of the Clayton Act restricts the mergers and acquisitions of organizations that may substantially lessen competition or tend to create a monopoly. Third, Section 2 of the Sherman Act prohibits monopolization.
Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.
Collusion is a deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right. Collusion is not always considered illegal. It can be used to attain objectives forbidden by law; for example, by defrauding or gaining an unfair market advantage. It is an agreement among firms or individuals to divide a market, set prices, limit production or limit opportunities. It can involve "unions, wage fixing, kickbacks, or misrepresenting the independence of the relationship between the colluding parties". In legal terms, all acts effected by collusion are considered void.
The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets worldwide.
Dwayne Orville Andreas, was one of the leading farm industrialists of the 20th century. He was former CEO and chairman of Archer Daniels Midland (ADM). Under his leadership he turned ADM into the largest processor of farm commodities in the United States.
In 2002, the United States Department of Justice, under the Sherman Antitrust Act, began a probe into the activities of dynamic random-access memory (DRAM) manufacturers in response to claims by US computer makers, including Dell and Gateway, that inflated DRAM pricing was causing lost profits and hindering their effectiveness in the marketplace.
A civil conspiracy is a form of conspiracy involving an agreement between two or more parties to deprive a third party of legal rights or deceive a third party to obtain an illegal objective. A form of collusion, a conspiracy may also refer to a group of people who make an agreement to form a partnership in which each member becomes the agent or partner of every other member and engage in planning or agreeing to commit some act. It is not necessary that the conspirators be involved in all stages of planning or be aware of all details. Any voluntary agreement and some overt act by one conspirator in furtherance of the plan are the main elements necessary to prove a conspiracy.
American River Transportation Co., LLC (ARTCO) is a subsidiary of Archer Daniels Midland (ADM). It provides river transportation, including barges and a shipyard; it also operates towboats on the Illinois River, Mississippi River, and Ohio River. ARTCO Stevedoring provides bulk transfer and crane services on near New Orleans, Louisiana on the Lower Mississippi River
LG Display Co., Ltd. is one of the world's largest manufacturers and supplier of thin-film transistor liquid crystal display (TFT-LCD) panels, OLEDs and flexible displays. LG Display is headquartered in Seoul, South Korea, and currently operates nine fabrication facilities and seven back-end assembly facilities in Korea, China, Poland and Mexico.
The lysine price-fixing conspiracy was an organized effort during the mid-1990s to raise the price of the animal feed additive lysine. It involved five companies that had commercialized high-tech fermentation technologies, including American company Archer Daniels Midland (ADM), Japanese companies Ajinomoto and Kyowa Hakko Kogyo, and Korean companies Sewon America Inc. and Cheil Jedang Ltd. A criminal investigation resulted in fines and three-year prison sentences for three executives of ADM who colluded with the other companies to fix prices. The foreign companies settled with the United States Department of Justice Antitrust Division in September through December 1996. Each firm and four executives from the Asian firms pleaded guilty as part of a plea bargain to aid in further investigation against ADM. The cartel had been able to raise lysine prices 70% within their first nine months of cooperation.
The Informant: A True Story is a nonfiction white-collar crime book written by journalist Kurt Eichenwald and published in 2000 by Random House. It documents the mid-1990s lysine price-fixing conspiracy case and the involvement of Archer Daniels Midland executive Mark Whitacre, inspiring a 2009 film adaptation starring Matt Damon as Whitacre.
The Informant! is a 2009 American biographical-crime comedy film directed by Steven Soderbergh. Written by Scott Z. Burns, the film stars Matt Damon as the titular informant named Mark Whitacre, as well as Scott Bakula, Joel McHale and Melanie Lynskey. It depicts Whitacre's involvement as a whistleblower in the lysine price-fixing conspiracy of the mid-1990, and his embezzlement of millions of dollars from his employer. The film is based on the 2000 nonfiction book The Informant, by journalist Kurt Eichenwald.
Illinois Brick Co. v. Illinois, 431 U.S. 720 (1977), is a United States Supreme Court case that involved issues concerning statutory standing in antitrust law.
The Competition Act is a Canadian federal law governing competition in Canada. The Act contains both criminal and civil provisions aimed at preventing anti-competitive practices in the marketplace.
United States v. Apple Inc., 952 F. Supp. 2d 638, was a US antitrust case in which the Court held that Apple Inc. conspired to raise the price of e-books in violation of the Sherman Act.
Heritage Pharmaceuticals Inc. is a manufacturer of generic pharmaceuticals based in Eatontown, New Jersey, United States, and established in 2006.
The TFT-LCD Antitrust Litigation was a United States class-action lawsuit regarding the worldwide conspiracy to coordinate the prices of Thin-Film Transistor-Liquid Crystal Display (TFT-LCD) panels, which are used to make laptop computers, computer monitors and televisions, between 1999 and 2006. In March 2010, Judge Susan Illston certified two nationwide classes of persons and entities that directly and indirectly purchased TFT-LCDs – for panel purchasers and purchasers of TFT-LCD integrated products; the litigation was followed by multiple suits.
