Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Cal.: Best Buy wins against HannStar, but not Toshiba in LCD price fixing case, (Sep 5, 2013)

By Jeffrey May, J.D.

Following a jury trial in an action brought by Best Buy Company against manufacturers of thin-film transistor liquid crystal display (TFT-LCD) panels for conspiring to fix prices, the federal district court in San Francisco yesterday entered a judgment in favor of the retailer on its claims against HannStar Display Corporation; however, the court entered judgment in favor of Toshiba Corporation and its related entities on Best Buy’s claims. The jury rendered its split verdict on September 3 (In re: TFT-LCD (Flat Panel) Antitrust Litigation: Best Buy v. Toshiba Corp., September 4, 2013, Illston, S.).

The jury concluded that Best Buy failed to prove by a preponderance of the evidence that Toshiba knowingly participated in the conspiracy to fix the prices of TFT-LCD panels, which are found on televisions, computer monitors, and notebook computers. On the other hand, the jury found that the retailer did provide such proof for purposes of its claims against Hannstar. The jury also found that the conspiracy involving imported TFT-LCD panels produced substantial intended effects in the United States. According to the jury, Best Buy proved damages for its direct purchases in the amount of $7,471,943. Judgment was entered against Hannstar in that amount.

Over the course of the long-running dispute, Toshiba had tried repeatedly to get out of the case. Most recently, the court in July denied Toshiba’s argument that it was entitled to summary judgment because Best Buy was unable to provide direct evidence of the company’s participation in any conspiracy meetings and was unable to satisfy its burden in providing evidence tending to exclude the possibility that Toshiba acted independently.

In a September 4 statement, Japan-based Toshiba said that it was grateful for the jury’s efforts and consideration. “Toshiba has consistently maintained that there was no illegal activity on its part in the LCD business in the United States, and Toshiba continues to hold that view,” according to the statement.

Taiwan-based Hannstar agreed in 2010 to plead guilty and to pay a $30 million fine for conspiring to fix TFT-LCD prices in a criminal action brought by the U.S. Department of Justice.

The case is No. 12-CV-4114 (MDL. No. 1827).

Attorneys: David Martinez (Robins Kaplan Miller & Ciresi L.L.P.) for Best Buy Co. Christopher M. Curran (White & Case) for Toshiba Corp.

Companies: Best Buy Co., Inc.; HannStar Display Corp.; Toshiba Corp.

Cases: Antitrust CaliforniaNews