Global grain trader and food processor Archer Daniels Midland Co. allegedly manipulated the price of ethanol to profit from a short position it was holding in the derivatives market, according to a lawsuit by a rival firm.
According to a report at Reuters, AOT Holdings, a Swiss company that owns an energy trading subsidiary, filed the class action complaint late on Wednesday in U.S. District Court’s Central District of Illinois Urbana Division, claiming damages from ADM’s actions of up to $6.33 million.
According to the lawsuit seen by Reuters, ADM was aggressively selling ethanol on the cash market at the Argo terminal just outside of Chicago. The selling would start 30 minutes ahead of the close of the trading day, it said.
