$33M Settlement Ends Panasonic Resistor Price-Fixing Class Action

Panasonic and other electronic companies have agreed to pay more than $33 million to settle indirect resistor purchaser claims through antitrust settlements.

The recent settlements will resolve claims that electronic companies conspired together between 2003 and 2014 to fix the price of resistors.

Resistors are used to regulate the flow of electricity in electronic devices such as cars, televisions, phones, and computers.

Indirect purchasers who brought claims against the electronics companies were allegedly forced to pay a higher price for electronic devices due to the alleged price-fixing scheme.

“The settlements were reached after more than three years of hard­-fought litigation and significant discovery […] and IPPs believe the settlements are in the best interests of the proposed classes,” the plaintiffs wrote in their settlement proposal filing.

Attorneys for the indirect resistor purchaser plaintiffs told Law 360 that the settlements are a “truly excellent recovery.”

According to the corrected copy of the indirect resistor purchaser settlement proposal, several companies will contribute to the settlement fund.

Panasonic Corp. will pay $10 million to the indirect resistor purchaser plaintiffs. Rohm Co. Ltd., a Japanese resistor company, will pay $2 million. Kamaya Co. Ltd. and Kamaya Inc. will pay the same $2 million amount. Hokuriko Electronic Industry Co. and the company’s U.S. subsidiary will pay $900,000.

These contributions by resistor companies will add to the $18.5 million which was already paid to the indirect resistor purchaser settlement by KOA Corp. and KOA Speer Electronics Inc. as a result of mediation.

The settlements to benefit indirect resistor purchaser plaintiffs were reached only a month after similar deals with direct purchasers. Settlement deals for direct purchasers will pay $25.75 million to resolve similar claims that they were affected by the alleged price-fixing scheme.

Under the direct purchaser settlements, Panasonic will pay $12 million, Rohm will pay $6.5 million, Kamay will pay $5.25 million, and Hokuriko will pay $2 million.

Unlike the indirect resistor purchasers, direct purchasers have not yet reached a settlement with KOA. However, the companies which have settled with the direct purchasers already have reportedly agreed to help with the ongoing litigation.

Should the deals with direct and indirect resistor purchaser plaintiffs be approved by the courts, they will resolve litigation which has been ongoing since 2014. The first lawsuit was filed at this time, and in 2015 several antitrust lawsuits were consolidated before U.S. District Judge James Donato.

By settling the indirect resistor purchaser lawsuits, the defendants do not admit any wrongdoing or participation in antitrust conspiracies. Instead, the settlements provide a way for both defendants and plaintiffs to avoid the costs of future litigation while providing favorable resolution which benefits plaintiffs and compensated their allegedly financial losses.

The indirect purchaser plaintiffs and Class Members are represented by Adam J. Zapala, Elizabeth T. Castillo and Mark F. Ram of Cotchett Pitre & McCarthy LLP.

The Conslidated Indirect Resistor Purchaser Lawsuits are Resistors Antitrust Litigation, Case No. 3:15­-cv-­03820, in the U.S. District Court for the Northern District of California.