Barrick Trial Is Delayed as Judge Orders More Settlement Talks

July 4 (Bloomberg) -- The judge in a lawsuit that accuses Barrick Gold Corp. of manipulating the price of gold delayed the start of the trial to give the company and the plaintiff, Blanchard & Co., more time to settle the case.

``Serious settlement negotiations are ongoing,'' U.S. District Court Judge Daniel Knowles of Louisiana said in a June 30 ruling that postpones the case until Jan. 17. Knowles also asked Barrick and Blanchard to try to come to him with a settlement at a July 26 meeting that he'll supervise. The trial was slated to begin later this month.

Blanchard sued Barrick, the world's third-biggest gold producer, in December 2002 and accused it of participating in a plan to hold down the price of gold, and then benefiting from the decline by making more than $2 billion in illegal profits through a hedging program.

Barrick spokesman Vince Borg wasn't immediately available to comment.

Barrick, based in Toronto, sold gold borrowed from banks and repaid it from future production. The company benefited from the difference between the interest it paid on the borrowed gold and the interest earned from the money received from sales of the gold.

Blanchard had also sued JPMorgan Chase & Co., the third- biggest U.S. bank. Last month Blanchard dropped its claim against JPMorgan. Details of the settlement are confidential, Blanchard spokesman Neal Ryan said in a June 14 interview.

Gold prices have climbed 35 percent in the past three years. The metal traded at $427.90 an ounce at 11:10 a.m. New York time.

The case is Civil Action No. 02-3721 filed in the Eastern District of Louisiana.