DOJ Subpoenas Smurfit Westrock Over Containerboard Pricing

The U.S. Department of Justice subpoenaed Smurfit Westrock on Sept. 22 over containerboard pricing, according to a securities filing the company released Wednesday morning. The subpoena stems from a grand jury investigation in the Northern District of Illinois into the pricing and sale of containerboard and related products.

Smurfit Westrock said it is "fully cooperating" and "believes that its business practices and those of its subsidiaries have been conducted in compliance with U.S. antitrust laws."

The company still flagged real financial risk. "While the Company is currently unable to determine the ultimate outcome of these matters or estimate the range of potential loss due to the early stage of these proceedings, it is possible that an adverse outcome could have a material impact on its financial condition, results of operations, or cash flows," the filing says. Smurfit Westrock did not respond to a request for comment by publication time.

Why a grand jury matters

Grand jury involvement usually means prosecutors have some evidence of an agreement among competitors, according to a Wednesday memo from Adam Josephson, packaging industry analyst and founder of Sakonnet Research. Josephson found no other instances of DOJ price-fixing prosecutions against U.S. containerboard producers in recent decades. That makes this probe unusual for the industry.

What about the civil case?

The DOJ subpoena isn't the only pricing fight. Smurfit Westrock remains tied to an ongoing class-action containerboard price-fixing lawsuit, also in the Northern District of Illinois. Filed in July 2025, the suit accuses producers — including Cascades, International Paper and Packaging Corporation of America — of operating a "cartel" and colluding on price to boost profits at customers' expense.

Smurfit Westrock itself was dismissed from that lawsuit in October 2025, presumably because the company did not exist during the period in question; it formed through Smurfit Kappa's acquisition of WestRock in 2024. Smurfit Kappa and WestRock, the two subsidiaries, remain defendants.

In September, Judge Mary M. Rowland denied the defendants' motions to dismiss. Her filing suggested enough evidence of a potential conspiracy exists to warrant further exploration of the claims.

Last week, Smurfit Kappa and WestRock filed responses denying "any and all allegations of wrongdoing." They again asked for dismissal and requested reimbursement of legal fees. "The Company believes that it has substantial defenses and intends to vigorously defend against the lawsuit," Wednesday's securities filing says.

What does this change for packaging buyers?

The filing also addressed pricing mechanics directly. Inflation costs are "unprecedented" this year, the company said, echoing executive comments on earnings calls, and those costs are passed to customers through price increases. However, "these clauses may not in all cases be effective to offset rising costs."

There's typically a three- to six-month lag between input cost increases and realized customer pricing. "There can be no assurance that announced price increases will be fully realized, that they will be realized within the time frames we expect, or that they will be sufficient to offset increases in our costs," the filing says.

Smurfit Westrock has pushed through three rounds of price hikes this year. The third wave drew widespread pushback, including from AICC, The Independent Packaging Association. Critics call the increases unjustified amid lagging demand and downgraded producer guidance. Containerboard prices in 2026 to date run roughly 20% higher than last year.

With a criminal probe and a live class action now running in parallel, every announced containerboard increase invites sharper scrutiny from buyers, courts and prosecutors alike.