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KYB Shock Absorbers Class Action Settlement Overview:
- Who: Japanese auto parts company KYB Corp.
- Why: KYB has reached a $3.5 million settlement with plaintiffs who say the brand conspired to fix the price of shock absorbers.
- Where: The settlement is part of massive multidistrict litigation lodged on behalf of direct purchasers of KYB shocks, as well as other auto parts, and pending in Michigan federal court.
A Japanese auto parts maker has reached a $3.5 million deal with buyers in the United States to settle claims it conspired to eliminate competition in the shock absorber market through price fixing.
The proposed settlement with KYB Corp. was filed Oct. 7 in a Michigan federal court.
The complaint was first filed in Oct. 2016 on behalf of direct purchasers of shock absorbers, which later became a large class action involving multiple defendants accused of auto parts price-fixing.
The action has been split into separate parts to deal with each of the different auto parts under investigation, including shock absorbers, wire harnesses, switches and steering angle sensors.
Competition Stifled, Price of KYB Shocks Inflated
The plaintiffs in this case allege KYB conspired to suppress and eliminate competition for shock absorbers by agreeing to raise, fix, maintain, and stabilize prices, rig bids, and allocate markets and customers for products sold in the United States, in violation of federal antitrust laws.
“Plaintiffs further allege that because of the conspiracy, they and other direct purchasers of Shock Absorbers were injured by paying more for those products than they would have paid in the absence of the alleged illegal conduct,” the settlement reads.
The settlement would benefit anyone in the United States who bought shock absorbers directly from KYB from Jan. 1, 1995 through October 11, 2016.
As part of the deal, KYB has also agreed to provide cooperation to assist plaintiffs in the prosecution of the claims against the non-settling defendants.
The settlement does not release KYB from claims brought by indirect purchases of its shock absorbers, or claims relating to purchases of shock absorbers outside the United States or for any other product.
Auto Parts Price-Fixing Claims
In 2011, a multinational investigation by the US Department of Justice and Japanese and European authorities into bid-rigging and price-fixing in the auto parts industry revealed widespread anti-competitive activity, according to Reuters.
The probe has led to criminal charges, and million-dollar settlements.
In 2019, KYB was one of numerous defendants who agreed to pay into a massive $1.2 billion auto parts price-fixing class action settlement to resolve claims that they conspired together to artificially raise the prices of various auto parts.
What do you think of this latest settlement? Let us know in the comments!
The plaintiffs are represented by David H. Fink and Nathan J. Fink of Fink Bressack, Joseph C. Kohn, William E. Hoese, and Douglas A. Abrahams of Kohn Swift & Graf PC, Eugene A. Spector, William G. Caldes, and Jeffrey L. Spector of Spector Roseman & Kodroff PC, Steven A. Kanner, William H. London, and Michael E. Moskovitz of Freed Kanner London & Millen LLC, Gregory P. Hansel, Randall B. Weill, and Michael S. Smith of Preti Flaherty Beliveau & Pachios LLP and Solomon B. Cera, Thomas C. Bright, and Pamela A. Markert of Cera LLP.
The KYB Shock Absorber Class Action Settlement is a part of In Re: Automotive Parts Antitrust Litigation, MDL Case No. 2:12-md-02311, and In Re: Shock Absorbers, specifically for Direct Purchaser Actions, Case No. 2:15-cv-03301, both in the U.S. District Court for the Eastern District of Michigan.
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