Opinion ID: 490525
Heading Depth: 2
Heading Rank: 2

Heading: Commodities Market Manipulation

Text: 89 The fifth claim in the amended complaint alleges that the defendants manipulated the commodities market in violation of the CEA, 7 U.S.C. Sec. 13(b), which prohibits, inter alia, (1) any attempt to manipulate the price of any commodity ... for future delivery and (2) delivery of false or misleading or knowingly inaccurate reports concerning ... market information or conditions that affect or tend to affect the price of any commodity in interstate commerce. 90 The amended complaint alleges first that the long defendants, with the assistance of the other defendants, attempted to and did manipulate the price of No. 2 Heating Oil by cornering or squeezing the market for No. 2 oil. Amended Complaint paragraphs 72-73. It also alleges that the long defendants, with the assistance of the other defendants, disseminated false reports in violation of the CEA. The district court dismissed both aspects of this claim. On appeal, Apex only presents arguments for reinstatement of the manipulation aspect of the claim. We therefore leave undisturbed the district court's dismissal of the false reports aspect of the claim. 91 The district court dismissed the manipulative scheme portion of the claim because while Apex alleged that the long defendants together engineered a squeeze, it failed to present evidence of a conspiracy. 641 F.Supp. at 1275. Having reversed this determination with respect to Belcher in the context of the antitrust claims, we also do so in the context of the commodities manipulation claim. 92 Apex urges us to reverse as to all the long defendants on this claim despite the lack of evidence of a conspiracy, suggesting that each defendant alone could have manipulated the market. However, the amended complaint did not allege that each long defendant manipulated the market. Rather, it alleges that the long defendants did so. Since the complaint alleges collective action, this suit cannot be allowed to proceed as if it alleges individual action. 93 We do, however, reverse the dismissal of the manipulation allegation against Belcher. The dismissal of the fifth claim is in all other respects affirmed.