Circuit City Reaches Class Action Settlement With LCD Panel Maker

AU Optronics Corp., makers of LCD panels for flat screen televisions, and the Circuit City Stores Inc. bankruptcy trustee have reached an antitrust class action settlement, which will allow the former retailer to vacate the multidistrict litigation alleging that AUO engaged in a price fixing conspiracy.

According to an order issued by U.S. District Judge Susan Illston of the California federal court in the northern district presiding over the MDL, a hearing that was supposed to happen on Friday, Feb. 6 was vacated, and she also denied AUO’s motion that the trial date continue on a later date than it was supposed to begin.

“The court has been informed that all remaining parties to this action have agreed upon a settlement of the matter and that the motion to continue is now moot,” Judge Illston wrote in her order to allow Circuit City to vacate the antitrust class action lawsuit.

A case management conference was scheduled for Friday, June 5.

“In the event that the contemplated settlement has been implemented and the parties dismissed by then, both the trial date and the conference will be vacated,” the California federal judge wrote.

“If not, the parties shall explain the status of the settlement and the contemplated implementation date,” she added.

The price-fixing class action lawsuit began after 2006, following an investigation by the Justice Department, which determined that AUO along with other LCD makers engaged in a conspiracy to fix the prices of LCD panels during the years prior.

Other companies that were also involved in the price fixing conspiracy, according to the Justice Department’s investigation, included Hitachi, Toshiba Corp., LG Display and others.

Circuit City along with other retailers filed antitrust price fixing class action lawsuits against the LCD makers, which were later consolidated together into an MDL in the California federal court, with Judge Illston presiding.

The allegations in the price fixing class action lawsuit against Epson Images Devices Corp. were dismissed with prejudice in December 2014, after the bankruptcy trustee Alfred Siegel agreed to their dismissal. Epson, along with other companies, was the first LCD maker hit with an antitrust class action lawsuit by the trustee in 2010.

Siegel’s allegations in the LCD panel price fixing class action lawsuit claimed that the LCD panel price fixing conspiracy took place for 10 years, which allegedly meant that Circuit City and other retailers were overcharged for LCD panel products, such as televisions and computer monitors.

Judge Illston gave Siegel another chance in September 2014 to explain why Hitachi America, which is an Hitachi Ltd. subsidiary, should pay Circuit City damages for the LCD panel price fixing conspiracy.

AUO is represented by Christopher A. Nedeau, Carl L. Blumenstein and Natasha A. Saggar Sheth of Nossaman LLP.

Siegel is represented by Kenneth S. Marks, Johnny Carter, Parker C. Folse III, Rachel S. Black and Jordan Connors of Susman Godfrey LLP.

The LCD Panel Price Fixing Antitrust Class Action Lawsuit is Alfred H. Siegel v. AU Optronics Corp. et al., Case No. 3:10-cv-05625, in the U.S. District Court for the Northern District of California.