Barrick settles lawsuits, wins apology (November 28, 2005)

New Orleans-based coin and bullion dealer Blanchard & Co., has settled its lawsuits and apologized to Barrick Gold (ABX-T, ABX-N) for its allegation that the gold producer was involved in price fixing.

“We regret having made the statements that gave rise to the libel action filed by Barrick in Canada and any embarrassment those statements may have caused Barrick or its officers or directors,” said the coin dealer in a prepared statement.

Blanchard, and customer Herbert Davies, originally launched an antitrust lawsuit against JPMorgan Chase & Co. (JPM-N) and Barrick in the U.S. District Court for the Eastern District of Louisiana in December 2002. Blanchard alleged that the two violated U.S. antitrust laws by unlawfully combining to manipulate the gold price and to monopolize the gold market. Blanchard claimed the pair had made some US$2 billion in short-selling profits since 1987 by “suppressing the price of gold at the expense of individual investors.” Morgan was later dropped from the suit.

On March 5, 2003, Barrick filed its own libel action against Blanchard in the Ontario Superior Court of Justice. The action sought $100 million in damages and aggravated, exemplary and punitive damages in the amount of $100 million. Barrick also asked the court for a permanent injunction restraining the defendants from repeating, disseminating, publishing or causing to be re-published the defamatory statements in question.

Barrick says the settlements mean that all litigation claims between the parties have been dismissed with prejudice. The company also said that it would not pay any damages as part of the resolution with the Blanchard case or the Brady and McKenzie class action suits.

Barrick also said it had settled its libel suit, with Blanchard agreeing to make an undisclosed payment.

Earlier this year, Barrick and Blanchard failed to settle their legal battle, after the Louisiana court ordered the two to reach an out-of-court deal.