Sumitomo in Talks to Settle Copper Suit

Sumitomo Corp. is in talks to settle a class-action lawsuit filed in California, another step in the company’s move to wrap up one of the biggest commodity trading scandals ever. “The main parties are in ongoing discussions, but there are a few outstanding issues to be settled,” said Larry Shucharow, lead attorney for the class-action suit. Sumitomo said Wednesday that it will pay $99 million to U.S. copper traders in New York, settling six class-action lawsuits that represented individuals who traded copper futures and options between June 24, 1993, and June 15, 1996. The lawsuit in California is a consolidation of two suits filed in July 1996 in San Diego Superior Court. The plaintiffs are businesses, including construction companies that buy copper pipe. The lawsuits were filed after a series of unauthorized transactions by Sumitomo’s chief copper trader, Yasuo Hamanaka, left the company with $2 billion in losses.