6 VITAMIN MAKERS WILL PAY $1.1 BILLION TO SETTLE PRICE-FIXING SUIT

Six of the world's largest vitamin makers have agreed to pay about $1.1 billion to resolve a class-action lawsuit that accused them of taking part in a global conspiracy to fix vitamin prices over the past decade.

The settlement would be one of the largest antitrust payments made in a private class-action suit in U.S. history, said lawyers close to the case. There are still some tense negotiations under way, but if the case is resolved, the six companies would all but admit that, for much of the past decade, they artificially hiked the prices of vitamins that went into everything from breakfast cereal and orange juice to animal feed.

The lawsuit, which was brought by some of the world's largest food, beverage and animal feed companies, accused the vitamin makers of forming an international cartel that met regularly in hotel rooms, sometimes under the fictional name ``Vitamins Inc.,'' to divide up the global market and artificially hike the prices of a wide range of vitamins, including vitamins A, C and E, as well as beta-carotene, essential ingredients in the diet of virtually every American.

``There's an oral agreement on most material terms,'' said Michael Hausfeld, one of the lead attorneys in the class-action suit, which he said could be settled in the next few weeks.

``It's a significant recovery as well as a demonstration of the effectiveness of the antitrust laws.''

The class-action suit was brought by direct purchasers of vitamins for consumers, such as Coca-Cola, Kellogg's and Kraft Foods Inc., as well as animal feed companies, which supply vitamin-supplemented rations for poultry and livestock.

Those companies would then have to decide whether to pass on the settlement proceeds to consumers but are not obligated to do so.

Consumers may eventually benefit from class-action suits led by a number of U.S. states. The six vitamin makers are Hoffman LaRoche, BASF AG, and Rhone-Poulenc, which are European-owned; and Daiichi Pharmaceutical Co., Eisai Co., and Takeda Chemical Industries Ltd., which are Japanese-owned.

People familiar with the talks said the six companies would pay more than $1.1 billion to settle the lawsuits, with about $125 million being set aside for attorney fees -- an issue that has not yet been resolved. The three European companies would pay the bulk of that money.

New York Times Syndicate