Smurfit Westrock, International Paper and Packaging Corporation of America each received a US Justice Department grand jury subpoena about containerboard pricing, the three companies said in securities filings this week1. The subpoenas come from a grand jury in the Northern District of Illinois, in Chicago, and concern the pricing and sale of containerboard and related products1, 2.
Smurfit Westrock said the department issued its subpoena on September 22. International Paper said its subpoena was issued on September 24, and both said they are cooperating2. The Justice Department has not formally accused any of the companies or their employees of a crime, and investigations do not always lead to charges1.
What the filings say
Smurfit Westrock told investors it "believes that its business practices and those of its subsidiaries have been conducted in compliance with U.S. antitrust laws"2. It also warned that "it is possible that an adverse outcome could have a material impact on its financial condition, results of operations, or cash flows"2. A spokesperson told Packaging Dive that the company had no further details on the investigation or its timing2.
International Paper said it is cooperating2. Its filing described the private lawsuit as being at an early stage. It added that "there can be no guarantee that the aggregate of possible damages could not have a material impact on our financial condition"2.
Both companies also told investors that they remain involved in a private price-fixing case in the same court2.
The lawsuit behind the subpoenas
That class action was filed in July 20252. It named Cascades, Georgia-Pacific, Packaging Corporation of America, Pratt Industries and others, and accused the producers of forming a "cartel" and colluding on prices to lift profits at customers' expense2.
In September, Judge Mary M. Rowland denied the defendants' motions to dismiss the case. She suggested in her filing that there is enough evidence of a potential conspiracy to warrant further exploration of the claims2. Smurfit Westrock was dismissed from the case in October 2025, but its Smurfit Kappa and WestRock subsidiaries remain defendants2. Last week, International Paper, Smurfit Kappa and WestRock filed responses denying "any and all allegations of wrongdoing" and asking for the case to be dismissed2.
The two tracks are different. The class action seeks damages for buyers, while the grand jury sits within a potential criminal price-fixing investigation1. Adam Josephson of Sakonnet Research wrote a memo on the subpoenas. In it he said prosecutors usually have some evidence of an agreement among competitors when a grand jury is involved2. He found no recent examples of the Justice Department prosecuting US containerboard producers for price fixing2.
Why the price file matters to buyers
Producers have raised prices several times this year to offset the effect of lower volumes, and Fastmarkets RISI's index for North American containerboard prices rose in September. That benchmark helps set prices in some contracts1.
Smurfit Westrock said it "implemented significant pricing initiatives across most paper grades" and expected them to more than offset input costs as they are passed through3. It also said it remained "sold out in all containerboard grades" in North America3. It expects the full benefit of price increases to show up in 20274.
Packaging Corporation of America guided fourth-quarter earnings of $2.81 per share excluding special items. It said improved packaging prices should be offset by seasonally weaker mix, mill outages and higher input costs5. International Paper's North America segment made $427 million of operating profit in the third quarter, against $204 million in the second6. The company targets $460 million to $500 million in the fourth6.
The industry has also become more concentrated1. Smurfit Westrock was created by the 2024 merger of Smurfit Kappa and WestRock. Packaging Corporation of America bought Greif's containerboard business last year for $1.8 billion1. The Independent Packaging Association, which represents converters that buy board rather than make it, said earlier this year that the increases "are reflective of a small group of producers having market dominance"1.
What this changes for 2027 contracts
Less than a headline might suggest, and more than a price sheet shows. The subpoenas are not a finding. No company has been charged, and the investigation may end without charges1.
What buyers do get is a documented reason to ask for the calculation behind an increase, and a sharper reason to read the index clause. Smurfit Westrock's filing says cost inflation this year is "unprecedented" and is passed to customers through price increases. It adds that "these clauses may not in all cases be effective to offset rising costs"2. Buyers should check which index, which grade and which region a clause names. They should also ask whether the supplier can pass through producer announcements rather than assessed prices1.
Supply is the other half of the negotiation. Smurfit Westrock says it is sold out in containerboard grades3. Packaging Corporation of America cited mill outages in its guidance5. A buyer who threatens to move volume needs a qualified second converter first.
The distraction risk looks modest for now. All three companies say they are cooperating1, 2, and none has flagged an interruption to supply. The larger risk sits in the civil case, where a September ruling kept the claims alive2.
What to watch
The next signals are whether prosecutors bring charges or close the inquiry1, and how the class action moves after the September ruling2. Georgia-Pacific, Pratt, Greif and Cascades did not respond to questions about whether they have been contacted by prosecutors1, so further disclosures from producers are possible.