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Alcoa corruption case reopened

District judge reopens Bahraini company’s racketeering lawsuit against U.S. aluminum producer

Yesterday a federal judge reopened a racketeering case against Alcoa Inc., the U.S.’s largest aluminum producer, so that the company can have a chance to clear its name.

In February 2008, Bahrain’s state-owned aluminum company, Aluminium Bahrain BSC, commonly called Alba, sued Alcoa, claiming the American company had paid kickbacks to Bahraini officials after it had overcharged Alba by hundreds of millions of dollars for alumina, a raw material that is used to make aluminum. A month after Alba filed its suit, U.S. District Judge Donetta Ambrose stayed the case because the Department of Justice (DOJ) began a criminal investigation to find out whether Alcoa violated the Foreign Corrupt Practices Act (FCPA), which prohibits bribing foreign officials.

Ashley Post

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