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Sotheby's trial heats up
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November 20, 2001: 7:50 a.m. ET
Former auction house CEO claims boss asked her to fix prices with Christie's.
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NEW YORK (CNN/Money) - The former chief executive of Sotheby's auction house testified Monday that the company's former chairman asked her to collude with rival auction house Christie's to fix prices, according to a published report Tuesday.
Diana Brooks, Sotheby's former chief executive, pleaded guilty to price fixing last year, but is taking the stand against her former employer in a Manhattan federal court in hopes of reducing her possible three-year sentence and large fine, the New York Times reported.
Brooks testified she met with her counterpart at Christie's International, Christopher Davidge, at the request of Sotheby's (BID: Research, Estimates) former chairman and largest shareholder, Alfred Taubman, according to the paper.
Brooks alleges Taubman asked her to arrange a price-fixing deal with Davidge that would include charging higher nonnegotiable fees for auction sellers and eliminating no-interest loans to clients, according to the Times.
Taubman claims Brooks and Davidge, who obtained immunity along with Christie's for coming out early with the price-fixing scheme, met and arranged a deal without his knowledge, the paper reported.
The testimony has included damaging remarks for both parties. Brooks alleged Taubman told her not to "act like a girl," when the price-fixing scheme became public.
Brooks also acknowledged that when Davidge allegedly approached her with a schedule of raised prices, she said, "It looks good to me," according to the Times.
Shares of Sotheby's gained 11 cents to close at $14.63 Monday. 
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