Ramen Noodle Price-Fixing Class Action Evidence Presented to Jury

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Plaintiffs in a class action lawsuit over an alleged ramen noodle price-fixing scheme presented evidence that two South Korean companies altered price lists before turning them over to authorities.

A number of ramen noodle price-fixing class action lawsuits claim manufacturers engaged in anti-competitive actions to artificially increase the price of instant noodles.

The lawsuits were consolidated into federal court in Northern California and a jury trial has commenced.

Plaintiffs alleged that the South Korean companies conspired to inflate the prices of ramen noodles for U.S. consumers. According to one class action lawsuit initiated by a Massachusetts man, the price of noodles increased by nearly 50 percent at six different times between 2001 and 2013.

According to the ramen noodle price-fixing class action lawsuit, the South Korean companies shared internal pricing documents using marketing teams at each company to ensure that they could pull in as much profit as possible –leaving direct purchasers and consumers to pick up the extra costs.

However, these high prices would not have been possible in a competitive market, alleged the ramen class action lawsuit.

The ramen noodle price-fixing class action lawsuits were sparked by a 2012 report from a Korean antitrust watchdog group. The ramen noodle companies were reportedly assessed $125 million in fines due to the report and prohibited from sharing price information.

The companies maintain that the increase in ramen noodle prices has to do with a raise in the prices ingredients, including palm oil and flour.

In a recent development, however, class action plaintiffs brought a forensic computer expert in to testify that internal pricing documents submitted to Korean regulators were modified by the ramen noodle companies prior to submission.

The ramen noodle price-fixing class action plaintiffs allege that the companies altered the documents while they were being investigated in an attempt to hide antitrust activities.

Additionally, evidence from the deposition of a former marketing executive with one of the ramen noodle companies accused of price-fixing was shown. In it, the executive reportedly indicates that he told the marketing team to stop sharing price information with competitors.

There are two sets of Class Members in the consolidated ramen noodle price-fixing class action lawsuit. One group includes entities that purchased ramen noodles directly from manufacturers. The other includes consumers who allegedly paid inflated prices to purchase the noodles at stores.

The direct and indirect purchasers are represented by Christopher L. Lebsock and Bonny Sweeney of Hausfeld LLP, Craig Raabe of Izard Kindall & Raabe LLP, Kevin Ruf of Glancy Prongay & Murray LLP and Daniel Birkhaeuser of Bramson Plutzik Mahler & Birkhaeuser LLP.

The Ramen Noodle Price-Fixing Class Action Lawsuit is In re: Korean Ramen Antitrust Litigation, Case No. 3:13-cv-04115, in the U.S. District Court for the Northern District of California.

UPDATE: On Dec. 17, 2018, a federal jury recently determined that Korean ramen noodle companies were not liable for alleged price-fixing which purchasers claim raised prices.

UPDATE 2: August 2019, a $350,000 settlement fund will be distributed between direct purchasers of Korean noodles that were allegedly the subject of a price-fixing scheme.