Grocery chain cheesed at DFA
By Dairy Herd news source | Tuesday, January 06, 2009
More birds have come home to roost in the case of Dairy Farmers of America and its questionable trading activities on the Chicago Mercantile Exchange. A grocery store chain in Connecticut has filed suit in U.S. District Court claiming that DFA and four defendants bought large amounts of cheese to distort and manipulate the market.
Stew Leonard’s claims that DFA intentionally and unlawfully intervened in the Chicago Mercantile Exchange to purchase “inordinate amounts” of cheese for the purpose of “cornering the market,” according to an article in the Hartford Courant.
Last month, DFA reached a settlement with the Commodity Futures Trading Commission, which ended the CFTC’s investigation into DFA’s trading activities. The settlement included a $12 million penalty against DFA and two of its former officers. To read a Dairy Alert item on this, click here.
To read the Hartford Courant article, click here.
Source: Associated Press and Hartford Courant
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