“Our Customers Are Our Enemies”: The Lysine Cartel of 1992–1995

Prosecution of the lysine cartel signaled aresurgence in global price-fixingconspiracies in dozens of markets. It was the first to enter thevideo age and set new precedents for large criminal fines. Thispaper examines the sensitivity of overcharges generated by thecartel to several factors: time period, seasonality of demand,and the price absent collusion. Civil settlements in the federalclass action (including the interrelated citric acid conspiracy)were the fourth highest in legal history. Yet, overcharges of65 to65 to 134 million mean that buyers in the federal class receivedat most single damages. The opt-out firms got double damages.