Samsung Conspired To Inflate DRAM Memory Prices, Alleges Class Action Lawsuit

A group of consumers claims that Samsung executives schemed to artificially inflate the price of the dynamic random-access memory (DRAM) technology commonly used in digital devices in a class action lawsuit filed Monday.  

More than a dozen lead plaintiffs claim in the nationwide class action filed in California federal court that Samsung, along with competitors Micron, and Hynix, conspired to stockpile DRAM technology, rather than put it on the market, causing prices to skyrocket for consumers. Allegedly, the price of DRAM wafers fell in the years preceding 2015 due to “vigorous competition between” Samsung and the other companies. At that point, say the plaintiffs, the companies began working together to limit supply, forcing consumers to pay higher prices.  

DRAM technology is used in a wide variety of digital electronics, according to the complaint. It is made from silicon wafers and is one of the common forms of semiconductor memory. Indeed, the plaintiffs include residents from across the nation who say they purchased laptops, smartphones, computers, and memory products at inflated prices due to Samsung, Micron, and Hynix’s conspiracy to limit supply and drive up prices of DRAM wafers.  

The class action lawsuit points out that together, the companies control nearly 100 percent of the DRAM market. The plaintiffs say that confidential witnesses who worked for the companies at the time say that, initially, Samsung began to stockpile the technology on its own in 2015.  

Samsung’s alleged stockpiling did not work on its own, however, and company executives began intentionally leaking information to its competitors about the supply of DRAM technology, say the plaintiffs.  

The class action lawsuit alleges that the companies discovered that, by working together to cut production, they could successfully drive up the price of DRAM wafers. The plaintiffs point to public statements, as well as information from a confidential witness, to show that the companies worked together to artificially inflate prices of DRAM technology, which, in turn, drove up the prices of digital devices for consumers.  

Indeed, DRAM wafers account for a significant part of the price a consumer pays for digital technology – from 5 to 50 percent, alleges the class action lawsuit. The plaintiffs point to analyses conducted between 2010 and 2017 that found the rise in the cost of technology was due to the higher cost of memory, in other words, DRAM wafers.  

This is not the first class action lawsuit Samsung and other manufacturers have faced over allegations of DRAM price-fixing. Direct and indirect purchasers of DRAM technology hit the companies with legal action in 2018 claiming they conspired to drive prices up.

The plaintiffs in the most recently filed class action seek to represent a nationwide Class of consumers who purchased devices that included DRAM technology between 2016 and 2018, along with subclasses of various state residents. In addition to damages for Class Members, the lawsuit is seeking to put a stop to the alleged DRAM wafer price-fixing conspiracy.  

Do you think you paid more for your digital devices due to the alleged Samsung DRAM wafer price-fixing scheme? Tell us about your experience in the comment section below! 

The lead plaintiffs are represented by Steve W. Berman, Benjamin J. Siegel, and Rio S. Pierce at Hagens Berman Sobol Shapiro LLP.  

The Samsung DRAM Memory Class Action Lawsuit is Lee, et al. v. Micron Technology, Inc., et al., Case No. 5:21-cv-03267 in the U. S. District Court for the Northern District of California.  

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