Packaging Corporation Down On Strong Volume (NYSE: PKG)

Shares of Packaging Corporation of America PKG are down sharply this morning, losing more than 6% on heavy volume. Earlier this morning, the packaging companies, including International Paper IP filed an antitrust lawsuit accusing International Paper, Packaging Corp of America and rivals of conspiring to fix prices on containerboard, which is used to make cardboard boxes. Kleen Products LLC, said that in August 2005, these companies began to limit containerboard production. "There are no innocent explanations for the coordinated price increases," the complaint said. "Although basic economics holds that manufacturers in a competitive market faced with similar demand conditions as evidenced here would be expected to increase production to satisfy market demand and gain market share, each defendant refrained." Shares of PKG are down 5.4% or a loss of $1.32 to $23.03, despite a rise in the broader markets. Packaging Corporation of America produces containerboard and corrugated products in the United States. Its corrugated packaging products include conventional shipping containers used to protect and transport manufactured goods; and multi-color boxes.