Class Action Claims Inductor Manufacturers Involved in Price-Fixing Conspiracy [UPDATE]
by Erin Shaak
Last Updated on February 28, 2022
Lifetime Service Center, Inc. v. Murata Manufacturing Co., Ltd. et al
Filed: January 23, 2018 ◆§ 5:18cv511
A group of 15 manufacturers has been accused of colluding to fix the prices of inductors, causing consumers to pay more than they would have in a competitive market.
Murata Manufacturing Co., Ltd. Murata Electronics North America, Inc. Panasonic Corporation Panasonic Corporation of North America Panasonic Electronic Devices Co. Ltd. Panasonic Electronic Devices Corporation of America Sumida Corporation Sumida Electric Co. Ltd. Sumida America Components, Inc. Taiyo Yuden Co., Ltd. Taiyo Yuden (U.S.A.) Inc. TDK Corporation TDK-EPC Corporation TDK Corporation of America TDK U.S.A. Corporation
California
Case Updates
February 28, 2022 – Inductor Price-Fixing Claims Against Panasonic, Others Dismissed for Good
Consolidated litigation that includes the proposed class action detailed on this page has been dismissed with prejudice by U.S. District Judge Edward J. Davila.
In a nine-page order submitted on February 3, Judge Davila summarized that the plaintiffs failed to sufficiently allege that the defendants conspired to fix inductor prices. In tossing one plaintiff’s fourth amended complaint, Judge Davila stated that the company failed to remedy deficiencies already identified by the court and again failed to demonstrate that the defendants engaged in “parallel pricing” with regard to inductor prices.
The pricing comparisons relied upon by the plaintiff “do not demonstrate parallel pricing because they do not show any trends, patterns, or relationships among the Defendants’ pricing over time,” the order states.
Judge Davila added that the plaintiff’s complaint also did not allege “new facts” showing that the defendants exchanged improper information among themselves at meetings.
In tossing another plaintiff’s third amended complaint, Judge Davila said the company lacked standing to pursue its claims given it failed to provide specifics on “what type of [i]nductors it purchased, in what quantity, at what price, or how the prices may have changed over time.” The company also failed to allege that it bought parts affected by alleged bid-rigging agreements, or that it was a target of any such agreements, the order relays.
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A group of 15 manufacturers has been accused of colluding to fix the prices of inductors, causing consumers to pay more than they would have in a competitive market. The lawsuit claims inductors – which it describes as “electronic components that store energy in the form of a magnetic field” – are used in a variety of electronic products, including smartphones, driver assistance systems in vehicles, and military equipment. According to the complaint, the price of inductors has risen steadily despite market conditions, indicating that the defendants have artificially increased inductor pricing.
“The only plausible explanation for the discrepancy between ever higher Inductor prices during times of decreasing global demand and decreasing manufacturing costs is conspiratorial activity,” the suit reads.
The case claims the defendants have communicated in secret meetings, many times at trade associations “under the guise of legitimate business contacts,” to “perform acts necessary for the operation and furtherance of the conspiracy.”
Notably, the complaint mentions, Panasonic has pled guilty to a number of other price-fixing allegations and has paid millions of dollars in criminal fines for its participation in such conspiracies.
The defendants in the case are named below:
- Murata Manufacturing Co., Ltd.;
- Murata Electronics North America, Inc.;
- Panasonic Corporation;
- Panasonic Corporation of North America;
- Panasonic Electronic Devices Co. Ltd.;
- Panasonic Electronic Devices Corporation of America;
- Sumida Corporation;
- Sumida Electric Co., Ltd.;
- Sumida America Components, Inc.;
- Taiyo Yuden Co., Ltd.;
- Taiyo Yuden (U.S.A.) Inc.;
- TDK Corporation;
- TDK-EPC Corporation;
- TDK Corporation of America; and
- TDK U.S.A. Corporation.
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