Hitachi Faces Class Action Lawsuit for Price-Fixing Engine Valves

A class of consumers are suing Hitachi Automotive Systems Ltd. for allegedly engaging in a long-running conspiracy to unlawfully fix, artificially raise, maintain and stabilize prices, rig bids for, and allocate the market and customers in the United States for Valve Timing Control Devices.

A Valve Timing Control Device controls the timing of engine valves’ operation. It is part of the entire engine management system known as “variable valve timing” in modern fuel-injected internal combustion engines, according to the proposed class action lawsuit, which is seeking to represent all persons and entities who bought or leased a vehicle with a Hitachi-made valve timing control device since 2000.

Just recently, Hitachi announced that it has agreed with the U.S. Department of Justice to conclude a plea agreement regarding violations of U.S. antitrust laws occurring in connection with the sales of certain automotive parts. The company agreed to pay a fine of $195 million.

Plaintiffs in the Hitachi engine valve class action lawsuit are suing Hitachi under the Sherman Antitrust Act as well as state antitrust, unfair competition and consumer protection laws.

The Sherman Antitrust Act prohibits certain business activities that federal government regulators deem to be anticompetitive, and requires the federal government to investigate and pursue trusts, companies, and organizations suspected of being in violation.

The class action lawsuit states that Hitachi manufactures Valve Timing Control Devices throughout and into the United States. The class action alleges that Hitachi and other yet unknown co-conspirators agreed, combined and conspired to fix, raise, maintain and stabilize prices, and allocate market shares for Valve Timing Control Devices.

The Hitachi price-fixing class action lawsuit further accuses Hitachi that the company conspired “to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize, and maintain the prices of Valve Timing Control Devices sold to automobile manufacturers and others in the United States.”

Because of this unlawful conduct, the class action lawsuit contends that plaintiffs paid artificially inflated prices for Valve Timing Control Devices during the class period and have suffered antitrust injury to their business or property.

A globally coordinated antitrust investigation is currently taking place in the United States, Europe, and Japan aimed at suppliers of automotive parts.

The plaintiffs are represented by the Miller Law Firm PC, Robins Kaplan Miller & Ciresi LLP, Susman Godfrey LLP and Cotchett  Pitre & McCarthy LLP.

The Hitachi Engine Valve Price-Fixing Class Action Lawsuit is Adams v. Hitachi Automotive Systems Ltd., Case No. 2:13-cv-14226 in the U.S. District Court for the Eastern District of Michigan.