US and Canadian wheat farmers are preparing a $1 billion damages claim against Australian wheat exporter AWB.
The farmers will claim they suffered lost income because AWB was paying illegal kickbacks to Saddam Hussein's regime in Iraq, The Australian newspaper reports.
If it succeeds, the action would cripple AWB, a company mostly owned by Australian wheat farmers.
Lawyers for the farmers plan to use the Racketeer Influenced and Corrupt Organisations Act (RICO), which covers bribery, kickbacks and extortion, and was passed by the US Congress in 1970 to eliminate organised crime.
AWB is accused of funnelling $290 million to Saddam's regime over four years.
Under the RICO law, any person who succeeds in establishing a claim can automatically receive three times their actual damages, plus costs.
The action will be taken on behalf of a handful of US and Canadian farmers, but thousands more could join the class action.
AWB Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
