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Global fragrance makers must face price-fixing case, US judge rules
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Global fragrance makers must face price-fixing case, US judge rules
Feb 24, 2025 10:33 AM

Feb 24 (Reuters) - Four European and American fragrance

makers must face lawsuits accusing them of conspiring to inflate

prices of ingredients used to make cosmetics, cleaners and other

household products, a federal judge in New Jersey has ruled.

U.S. District Judge William Martini on Friday rejected

efforts by the companies - Switzerland-based Givaudan and

Firmenich, which has merged with DSM Group; U.S.-based

International Flavors & Fragrances ( IFF ) and Germany's Symrise - to

dismiss three proposed class action lawsuits filed in 2023 by

consumers and other buyers.

The lawsuits, alleging an illegal price-fixing conspiracy,

came after EU investigators in 2023 announced an antitrust

investigation of some major fragrance makers.

The judge dismissed some state-based allegations but will

allow those plaintiffs to file an amended lawsuit within 30

days.

Givaudan, Symrise, Firmenich and International Flavors &

Fragrances ( IFF ) did not immediately respond to requests for comment.

They have denied any wrongdoing.

Attorneys for buyers did not immediately respond to similar

requests.

Martini is presiding over cases filed by consumers,

companies that purchased products directly from the defendants,

and "indirect" buyers that purchased fragrance ingredients and

compounds from sellers other than the defendants.

Sales of fragrance ingredients reached $9.1 billion in 2022,

according to the plaintiffs, who alleged that the fragrance

market was highly concentrated and "more susceptible to

collusion and other anticompetitive practices."

The fragrance companies in seeking dismissal of the lawsuits

argued that the plaintiffs failed to offer adequate evidence of

a conspiracy to fix prices.

"The ambition of plaintiffs' claims stands in sharp contrast

to the paucity of their factual allegations," the companies told

the judge.

They said the lawsuits were "based on nothing more than

reports of government inquiries into the fragrance industry."

European antitrust investigators said in June 2024 that

their fragrance industry probe was ongoing.

The cases are In re: Fragrance Direct Purchaser Antitrust

Litigation, U.S. District Court for the District of New Jersey,

No. 2:23-cv-02174-WJM-JSA; In re: Fragrance Indirect Purchaser

Antitrust Litigation, No. 2:23-cv-03249-WJM-JSA; and In re:

Fragrance End-User Plaintiff Antitrust Litigation, No.

2:23-cv-16127-WJM-JSA.

Read more:

Fragrance companies ask court to toss 'threadbare' US

price-fixing lawsuits

Flavor, fragrance makers face wave of US antitrust lawsuits

after EU cartel raids

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