Alcoa argued in a legal filing Friday, seeking dismissal of a lawsuit that conceivably could cost it more than USD 1 billion. The North Shore based company has waited nearly four years to make its argument, since Aluminum Bahrain BSC called Alba filed a complaint blaming Alcoa for a series of intercontinental transactions that were allegedly greased by bribes.

An Alcoa spokeswoman said that "We have moved to dismiss this case in its entirety because Alba's claims are not supported by law or by fact. Alba mischaracterizes any number of normal business transactions through overdrawn inferences and innuendo and those mischaracterizations fail to meet the legal threshold for Alba's claims."

Alba's claims have spurred a Department of Justice Fraud Section probe that delayed the lawsuit's progress for more than four years. Alcoa reiterated Friday that it is cooperating with federal investigators. The Justice Department declined comment.

Alba detailed its charges in December 28 court filing. It said that Alcoa pushed Alba to start buying the raw material alumina mined by an Alcoa subsidiary in Australia but through companies set up by Canadian businessman Mr Victor Dahdaleh.

Alba said that Mr Dahdaleh got USD 13.5 million in unearned commissions from Alcoa. Those were used by Mr Dahdaleh to pay some USD 11.6 million in bribes almost all to Mr Bruce Hall a former CEO of Alba. In return Mr Hall and others steered Alba into contracts that had it paying around USD 400 million more for alumina than market prices would have dictated.

Mr Charles Gibbons an attorney with Buchanan Ingersoll & Rooney said that Alba has the utmost confidence in the case that we have submitted. Mr Dahdaleh and Mr Hall face fraud charges in London. No Alcoa officials have been charged.

Alba has argued that the arrangement constituted racketeering influenced corrupt organization, with Alcoa as the puppet master US RICO laws allow for both criminal prosecutions and civil lawsuits. A civil RICO verdict can bring awards of triple the damages suffered.

Alcoa on Friday cited court decisions saying that RICO doesn't apply when the deeds alleged were entirely overseas by non American people and businesses. Alba can now file a response to Alcoa's motion to dismiss and US District Judge Donetta W Ambrose would decide whether the case can proceed.

(Sourced from www.post-gazette.com)