Containerboard Producers Face Continued Price-Fixing Litigation After Dismissal Motions Denied

A U.S. federal judge has rejected individual and joint motions by North American containerboard producers seeking dismissal of a price-fixing lawsuit filed by Artuso Pastry Foods Corp., allowing the case to proceed to discovery.

Judge Mary M. Rowland of the U.S. District Court for the Northern District of Illinois ruled that the plaintiff had presented sufficient allegations to make an alleged conspiracy plausible. The lawsuit, filed in July 2025, accuses containerboard and packaging producers of coordinating price increases.

Defendants include Cascades, Georgia-Pacific, Greif, International Paper, Packaging Corporation of America (PCA), Pratt Industries, Smurfit Kappa North America and WestRock CP. Three Cascades entities — Cascades Inc., Cascades USA Inc. and Cascades Holding US, Inc. — remain named in the case.

In a 49-page decision, Rowland said the plaintiff's allegations concerning six "lockstep or nearly lockstep" price increases were sufficient to establish parallel conduct at the motion-to-dismiss stage. The ruling does not determine whether an unlawful agreement existed or whether any defendant is liable.

The defendants argued that the price increases had non-conspiratorial explanations, including increased demand during the COVID-19 pandemic and higher input costs, particularly for old corrugated containers (OCC). Rowland concluded that those factors did not align closely enough with the timing of the alleged price increases to provide an "obvious and comprehensive explanation" at this stage.

The judge also pointed to consolidation in the containerboard industry as a factor supporting the plausibility of the plaintiff's claims. According to allegations cited in the ruling, five major producers now control at least 85% of the North American market, compared with 42% in the mid-1990s.

PCA and Pratt separately argued that the complaint lacked sufficient evidence tying them to an alleged conspiracy. Rowland rejected those arguments, finding that the complaint contained specific allegations that plausibly connected both companies to the alleged conduct.

The ruling lifts the previous pause on discovery. The defendants must answer the complaint by September 29, followed by a joint status report proposing dates for discovery.

The court previously reduced the number of defendants from 12 to 10, dismissing Graphic Packaging International in September 2025 and Smurfit WestRock in October 2025. The companies that formed Smurfit WestRock through their 2024 merger — Smurfit Kappa and WestRock — remain defendants. The case also continues to name three separate Cascades entities.

The litigation remains at an early stage, and the court has not ruled on the underlying allegations.