Computer Chip Price-Fixing Class Action Settlement Gets Final Approval

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A California federal judge has approved a $310 million class action settlement that will resolve allegations that the makers of computer memory chips conspired to fix the prices of dynamic random-access memory (DRAM) chips between 1998 and 2002, causing individuals and businesses to pay an inflated price for DRAM products. If you purchased DRAM or products containing DRAM, such as computers, printers, video game consoles or other electronic devices during that time, you could qualify to receive money from the computer chip price-fixing class action settlement.

U.S. District Court Judge Phyllis Hamilton granted final approval to the computer chip class action settlement despite several objections about how the settlement funds would be distributed. Some objectors raised concern that the class lacked the required predominance because many states don’t allow indirect purchasers to make claims. Judge Hamilton noted that she was comfortable overriding those objections because the plaintiffs could prove that they purchased the DRAM products under the “umbrella” of the antitrust conspiracy, or that the DRAM products were purchased in states that allow indirect purchasers to make claims in antitrust actions.

Objectors also raised concern about the terms in the class action settlement that would allow the defendants to donate $40 million to nonprofit organizations instead of using the money to pay Class Members’ claims. The judge also overruled objectors who were concerned about the proposed attorneys’ fees, which amount to nearly 25 percent of the class action settlement award. However, the judge found that the litigation had been ongoing for nearly a dozen years and merited such a substantial payment.

Under the terms of the computer chip class action settlement, DRAM manufacturers are subject to an antitrust injunction that prohibits them from price-fixing, bid-rigging and market allocation with respect to the manufacture and sale of DRAM in the United States for three years.

The computer chip price-fixing settlement will resolve numerous antitrust class action lawsuits filed by direct and indirect purchasers of DRAM products beginning in 2002, after the U.S. Department of Justice initiated a criminal investigation into allegations of DRAM price-fixing. The DRAM class action lawsuits were eventually consolidated into multidistrict litigation called In re: Dynamic Random Access Memory Antitrust Litigation. Direct purchasers of DRAM previously reached a class action settlement with the various computer chip makers for more than $300 million.

To learn more about the computer chip price-fixing class action settlement, visit our open settlement page here or visit www.DramClaims.com to file a claim. The deadline to file a claim is Aug. 1, 2014, so act now!

The indirect purchasers are represented by Cooper & Kirkham PC, Straus & Boies LLP, The Mogin Law Firm PC, Gustafson Gluek PLLC, Zelle Hoffman Voelbel Mason & Gette LLP and Gross Belsky Alonso LLP.

The Computer Chip Price-Fixing Class Action Lawsuit is In re: Dynamic Random Access Memory Antitrust Litigation, Case No. 4:02-md-01486, in the U.S. District Court for the Northern District of California.