On Tuesday, class counsel for the direct purchase plaintiffs filed a motion asking the Northern District of California to approve the dispersal of funds associated with a $232 million fourth round settlement reached between the plaintiffs and certain defendants. The class-action antitrust case alleged that nearly two dozen competing manufacturers agreed to artificially raise and fix the prices of capacitors, fundamental components found in electrical circuits, resulting in antitrust overcharges.
As explained in the direct purchaser plaintiffs’ 2018 amended complaint, the conspiracy started as early as 2002 and lasted until 2013. It was ostensibly spurred by the then-weak demand for capacitors and declining sales. According to the complaint, the defendants decided to rectify slumping profits by colluding to set prices for aluminum, tantalum, and film capacitors.
The complaint accused the manufacturers of engaging in an overarching conspiracy, effectuated through direct and indirect communication, to control the prices for capacitors worldwide. In order to ensure their scheme was effective, the filing explained, the defendants performed “the various acts necessary to achieve the anticompetitive purposes of this scheme, as well as to conceal their activity from public view and regulatory oversight.”
Between 2016 and 2018, NEC TOKIN Corporation, Hitachi Chemical Co. Ltd., Elna Co. Ltd., Rubycon Corporation, Matsuo Electric Co. Ltd., Nichicon Corporation, and Nippon Chemi-Con Corporation pled guilty to criminal price fixing charges leveled by the Department of Justice. In the class action, settlements ensued with most of the defendants in the early stages of litigation.
On Nov. 6, 2020, the court granted final approval to the fourth and final settlement round after conducting a fairness hearing, and with no objections to the settlement pending. Since then, the claims administrator has reportedly reviewed all submissions and notified claimants of any denials or adjustments.
According to the motion, after deducting attorneys’ fees and costs totaling nearly $80 million, the requested settlement administration fees and expenses, and tax payments, there will be approximately $152 million available for distribution to class members. In turn, class counsel requested that the court issue an order permitting distribution of the funds and authorizing payment of the claims administrator’s fees and expenses.
Joseph Saveri Law Firm LLP is lead counsel for the direct purchaser class.
