NTN Agrees to $2M Auto Parts Price-Fixing Class Action Settlement

A $2.1 million settlement has been proposed in a class action lawsuit alleging NTN Corp., a bearing manufacturer from Japan, engaged in an auto parts price-fixing scheme.

Several auto parts manufacturers were hit with class actions over alleged price-fixing. The cases were consolidated into multidistrict litigation (MDL) that accused various players in the auto industry of entering into a conspiracy to fix prices, rig bids and allocate the market for auto part products in the United States. The MDL alleged that the price-fixing conspiracy lasted for decades.

The parties to the class action asked a judge to grant preliminary approval of NTN’s settlement proposal. NTN denies that they entered into the alleged price-fixing scheme, but has agreed to pay $2.1 million as well as provide documents related to the allegations, depositions and witness interviews.

“A settlement providing the substantial benefits afforded here represents an excellent result for the members of the proposed settlement class,” said NTN in its motion for approval of the settlement. “NTN’s $2,076,000 payment provides significant compensation to the proposed settlement class that will be available years earlier than would be the case if litigation against NTN continued through trial and appeal.”

NTN joins several other defendants who have settled claims in the price-fixing class actions. In November, NTN agreed to settle claims with indirect buyers for $10 million. In August of last year, Japanese suppliers Fujikura Ltd. and T.Rad Co. Ltd. agreed to pay more than $14.5 million to end-payors to resolve allegations they engaged in a conspiracy to fix the prices of auto parts. In July of this year another defendant, Denso, agreed to pay $255 million to settle claims against it in the class action.

In November of 2015, several defendants agreed to pay $54 million to settle the claims as well. 

The U.S. Department of Justice launched an investigation into suspected conspiracies to fix prices and rig bids among major players in the auto industry in 2011. Japanese and European authorities joined the Justice Department’s efforts. The class actions and eventually the multidistrict litigation followed. The Justice Department’s investigation has resulted in $2 billion in fines against the auto parts makers. Additionally, more than 35 companies and 55 executives have already pled guilty or have agreed to plead guilty as a result of the investigation.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The dealership plaintiffs are represented by Mantese Honigman PC, Cuneo Gilbert & Laduca LLP, Barrett Law Group PA and Larson King LLP, among other firms.

The Auto Parts Price-Fixing Class Action Lawsuit 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.