Antitrust Law Daily Wrap Up, ANTITRUST—E.D. Wis.: Sheet metal product purchasers obtain approval of $25M settlement, (Aug 14, 2015)

By Greg Hammond, J.D.

Purchasers of automotive sheet metal parts have obtained final approval of a $25 million settlement, disposing of claims that a group of Taiwanese manufacturers engaged in a price fixing conspiracy. The federal district court in Milwaukee granted final approval upon finding the settlement to be fair, reasonable, and adequate (Fond Du Lac Bumper Exchange, Inc. v. Jui Li Enterprise Company, Ltd., August 13, 2015, Adelman, L.).

The purchasers claimed that the settling defendants—Tong Yang Industry Co., Ltd., Taiwan Kai Yih Industrial Co., Ltd., TYG Products, L.P., and Gordon Auto Body Parts Co., Ltd.—as well as the non-settling defendants conspired to raise prices for aftermarket automotive sheet metal parts, resulting in purchasers paying higher prices than they otherwise would have paid but for the unlawful conduct. They contended that the settlement in this case was fair and reasonable because it provided substantial and immediate monetary relief to the class while avoiding the risks of class certification, summary judgment, trial, and appeal.

The court agreed, finding that: the settlement, taken as a whole, was fair, reasonable, and adequate; the agreement is the product of good faith, arm’s length negotiations; class counsel has conducted a thorough examination, investigation, and valuation of the relevant law, facts, and allegations and has engaged in sufficient discovery to assess the merits of the claims, liability, and defenses in this action; and the Notice Plan, as approved and executed, was the best notice practicable, valid, due and sufficient notice to all settlement class members, and complied fully with the requirements of Federal Rule of Civil Procedure 23 and due process requirements.

In determining that the prerequisites for a class action under Rules 23(a) and 23(b)(3) were satisfied, the court certified a settlement class consisting of: “All persons and entities in the United States, and its territories and possessions, which purchased Aftermarket Automotive Sheet Metal products directly from any of the defendants between January 1, 2003, and May 14, 2015.”

The case number is 2:09-cv-00852-LA.

Attorneys: Andrew M. Purdy (Joseph Saveri Law Firm), Benjamin D. Brown (Cohen Milstein Hausfeld & Toll), and Christopher M. Burke (Scott + Scott LLP) for Fond du Lac Bumper Exchange Inc. and Roberts Wholesale Body Parts Inc. Alfredo A. Bismonte (Beck Bismonte & Finley LLP) for Jui Li Enterprise Company Ltd. Belinda S. Lee (Latham & Watkins LLP) for Tong Yang Industry Company Ltd., Gordon Auto Body Parts, and Taiwan Kai Yih Industrial Company Ltd. Cindy D. Hinkle (Buchanan Ingersoll & Rooney PC) for Auto Parts Industrial Ltd.

Companies: Fond du Lac Bumper Exchange Inc.; Roberts Wholesale Body Parts Inc.; Jui Li Enterprise Company Ltd.; Tong Yang Industry Company Ltd.; Gordon Auto Body Parts; Taiwan Kai Yih Industrial Company Ltd.; Auto Parts Industrial Ltd.

Cases: Antitrust WisconsinNews