Judge Approves Two Auto Parts Price-Fixing Class Action Settlements

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On Monday, a Michigan federal judge preliminarily approved two class action settlements in the massive antitrust litigation between car dealerships and auto parts makers over an alleged scheme to fix the prices of automotive safety harnesses and safety restraints.

Lear Corp., Kyungshin-Lear Sales and Engineering LLC and Autoliv Inc. agreed to settle their portion of the auto parts price-fixing multidistrict litigation (MDL) earlier this year. In May, Lear agreed to pay $8.75 million to resolve allegations it conspired with other auto parts makers to fix the prices of automotive wire harness systems. Last month, Autoliv agreed to a $65 million class action settlement with direct purchasers, auto dealers and consumers over allegations it conspired to fix the prices of occupant safety systems.

U.S. District Judge Marianne O. Battani gave preliminary approval to the two class action settlements and certified a class of car dealership purchasers. “The terms of the Settlement Agreement are preliminarily approved, including the release contained therein, as being fair, reasonable, and adequate to the Settlement Class, subject to a Fairness Hearing,” the judge wrote.

Other auto parts makers have begun to settle the price-fixing class action lawsuits. In January, Nippon Seiki Co. Ltd. agreed to a $4.56 million class action settlement. In June, Yazaki Corp. and TRW Deutschland Holding GmbH settled their portions of the auto parts price-fixing MDL, and indicated that they anticipated the class action settlement would receive preliminary approval this month.

Although the car part makers are reaching class action settlements, the antitrust litigation is far from over. In February, Panasonic Corp. Hitachi Automotive Systems Ltd., Mitsuba Corp. and other auto parts makers were hit with separate antitrust class action lawsuits accusing them of conspiring to fix prices for a number of auto parts.

The Antitrust Division of the U.S. Department of Justice is conducting a criminal investigation into allegations of illegal price-fixing and bid-rigging in the automotive parts industry. It is reportedly the largest criminal investigation ever performed by the Antitrust Division and has already yielded billions of dollars in criminal fines. To date, 27 companies have either pleaded guilty or have agreed to plead guilty, and 36 individuals have been charged in the antitrust investigation.

Details about how to file a claim for the Autoliv or Lear class action settlements were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The car dealerships are represented by Brendan Frey, Gerard V. Mantese and David Hansma of Mantese Honigman Rossman and Williamson PC; Don Barrett, Brian Herrington and David McMullan of Barrett Law Group PA; Jonathan W. Cuneo, Joel Davidow, Daniel Cohen, Michael J. Flannery, Victoria Romanenko and Yifei Li of Cuneo Gilbert & LaDuca LLP; and Shawn M. Raiter of Larson King LLP.

The Auto Parts Price-Fixing MDL is In re: Automotive Parts Antitrust Litigation, Case No. 2:12-md-02311, in the U.S. District Court for the Eastern District of Michigan.

UPDATE: September 2017, the automotive wire harness antitrust class action lawsuit have secured settlements from five defendants worth more than $249 million. Click here to file a claim.