International Paper Company (IP) has disclosed a new risk, in the Litigation & Legal Liabilities category.
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International Paper Company faces significant business risks due to ongoing legal, regulatory, and governmental proceedings, particularly concerning antitrust and environmental matters. Notably, the company and its DS Smith subsidiaries in Italy are involved in a case with the Italian Competition Authority regarding alleged anti-competitive behavior, and they are also defendants in a class action lawsuit alleging price-fixing of containerboard products. These proceedings, along with other potential loss contingencies, pose a threat of material adverse impact on the company’s financial results. Although International Paper intends to defend itself vigorously, the early stage of these claims makes it difficult to predict the ultimate financial liability, which could be substantial.
Overall, Wall Street has a Moderate Buy consensus rating on IP stock based on 4 Buys, 1 Sell and 2 Holds.
To learn more about International Paper Company’s risk factors, click here.