The US Justice Department is conducting a grand jury investigation into possible criminal price-fixing in the containerboard market.
Smurfit Westrock, International Paper, and Packaging Corporation of America (PCA) disclosed in regulatory filings that they had received subpoenas linked to proceedings in Chicago federal court.
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Cascades said it received a subpoena in September in connection with the investigation, according to a statement provided to Bloomberg.
Each company said it is co-operating with the authorities.
Cascades declined to comment further.
Smurfit Westrock said in its filing that the investigation concerns the pricing and sale of containerboard and related products.
The inquiry follows a class-action lawsuit filed last year.
The case alleged that containerboard makers had agreed to fix prices for products from 2020 onwards.
The lawsuit named Smurfit Westrock, International Paper, PCA, Cascades, Koch Industries’ Georgia-Pacific, Greif, and Pratt Industries as defendants.
The Justice Department has not accused the companies, or any employees, of criminal wrongdoing.
A grand jury investigation does not necessarily result in charges.
The containerboard industry has consolidated over recent decades.
Smurfit Westrock was formed through the 2024 combination of Ireland-based Smurfit Kappa and Atlanta-based WestRock.
PCA acquired Greif’s containerboard business for $1.8bn last year.
Containerboard and box producers have faced lower demand amid inflationary pressure and high freight costs.
Major producers have increased prices several times this year to offset lower volumes.
Fastmarkets RISI’s North American containerboard price index rose in September following those increases. The benchmark is used to set prices in some contracts.
The Independent Packaging Association represents companies that buy paper material to convert into corrugated cardboard and boxes, rather than operating paper mills.
It said earlier this year that such “increases are reflective of a small group of producers having market dominance.”
