TRW Settles Auto Parts Price-Fixing Class Action Lawsuit

One of several companies that make occupant safety restraint systems for vehicles has agreed to settle its auto parts price-fixing class action lawsuit for $5.4 million, according to a motion filed by the plaintiffs’ class action attorneys.

The number belies the true value of the settlement. Not only has TRW Deutschland Holding GmbH and TRW Automotive Holdings Corp. (together, “TRW”) agreed to that amount, but TRW also will “provide early and comprehensive cooperation in the form of, inter alia, attorney proffers, interviews with and depositions of witnesses, and the production of certain documents (including transactional data), related to the claims asserted in this case.”

This is critical because the case is one of many that has been centralized in U.S. District Court in Michigan regarding purported violations of the Sherman Antitrust Act by auto parts makers, including not just those that make safety systems but many other components. The motion notes that the data provided by TRW would help buttress claims made against other part makers.

In addition, “the proposed Settlement Class retain their ability to recover from the remaining defendants the entire damages caused by the alleged conspiracy, even those attributable to TRW, less only the amount paid by TRW in settlement.” For monopoly class action lawsuits, the total economic loss suffered by plaintiffs is spread among the defendants.

The settlement is the second achieved by the class action attorneys, following an agreement with Autoliv for $19 million to resolve its share of the claims without admitting liability. TRW has also settled with the U.S. government regarding these claims and other parts manufacturers have paid hundreds of millions of dollars. However, dozens of cases remain in federal court even after months of settlements.

Allegations of a potential cartel regarding automotive safety systems include Takata, Tokai and Tram. Other companies have been named in centralized class action lawsuits including instrument panels, wire harnesses and various portions of the engine. In each, the argument is that the companies held and hold such a large share of the market with consistent demand from automakers that they were able to add a premium to their prices in combination with others.

TRW announced it had reached the class action settlement in June.

The plaintiffs are represented by Cotchett Pitre & McCarthy LLP, Robins Kaplan Miller & Ciresi LLP and Susman Godfrey LLP, among others.

The Auto Parts Price-Fixing Class Action Lawsuit and others are centralized as In re: Automotive Parts Antitrust Litigation, Case No. 2:12-md-02311, in the U.S. District Court for the Eastern District of Michigan.