Paper Competition

Washington, DC: (Nov-12-07) Several class action lawsuits were filed against UPM by direct purchasers of magazine paper and labelstock in the United States. The suits were brought following criminal investigations conducted by the US Department of Justice, into competitive practices in 2003. As part of a settlement reached, sources confirmed that the company agreed to a $9 million payout as compensation to magazine paper customers and $8.25 million to labelstock customers, to resolve allegations. UPM officials claimed that the charge, totaling about EUR 12 million, will be recorded for the last quarter of 2007. It was also stated that the class action lawsuits filed by indirect purchasers of magazine paper and labelstock are still pending. [PAPER AGE: ANTI-COMPETITIVE]