Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Cal.: Korean ramen noodle manufacturer settles price fixing claims for $1.5M, (Aug 23, 2016)

By Greg Hammond, J.D.

Alleged purchasers of Korean ramen noodles have obtained final approval of two settlements, disposing of claims that ramen manufacturer Samyang Foods Co., Ltd. engaged in a price fixing conspiracy with other manufacturers and distributors. The federal district court in San Francisco determined that the settlements, which will provide the settling classes with $1.5 million plus interest and costs, were fair, reasonable, and adequate (In re Korean Ramen Antitrust Litigation, August 22, 2016, Orrick, W.).

In July 2012, the Korean Fair Trade Commission (KFTC) determined that four Korean companies—Nongshim Co., Ltd., Ottogi Co. Ltd., Samyang Foods Co. Ltd., and Korea Yakult Co. Ltd.—conspired to fix the prices of Korean noodles in Korea. Subsequently, in 2013, alleged direct purchasers (consisting of food retailers and distributors) and indirect purchasers filed suit in the United States, alleging that the four companies and their distributors in the United States conspired to fix the prices of Korean noodles sold in the United States. The plaintiffs alleged that the manufacturers and distributors engaged in a price fixing conspiracy in violation of the Sherman Act and California’s Cartwright Act, and violated various state antitrust and consumer protection laws.

The district court granted preliminary approval of two settlements in November 2015, in which Samyang agreed to pay $500,000 plus interest accrued to the indirect settlement class and $1 million plus interest accrued to the direct settlement class.

In granting final approval, the court considered the complexity, expense, and likely duration of the litigation, the two settlement class’ reactions to the settlement, and the results achieved, and concluded that both settlements were fair, reasonable, and adequate. In addition to the monetary relief, Samyang agreed to reimburse the indirect settlement class more than $200,000 in costs incurred in the prosecution, and the direct settlement class more than $430,000.

The direct settlement class includes all individuals and entities that directly purchased Korean noodles in the United States and its territories from one or more defendants from May 1, 2001, through December 31, 2010. Similarly, the indirect settlement class includes all individuals and entities that indirectly purchased Korean noodles in the United States and its territories including, without limitation, in the states of California, Florida, Massachusetts, Michigan, New York, and Hawaii, from one or more defendants from May 1, 2001, through December 31, 2010.

The case is No. C-13-04115-WHO.

Attorneys: Alan R. Plutzik (Bramson, Plutzik, Mahler & Birkhaeuser LLP) and Gregory Bradley Linkh (Glancy Prongay & Murray LLP) for Rockman Co. USA, Inc., M.T. Trading Corp., and The Plaza Co. Elizabeth Dianne Mann (Mayer Brown LLP) for Samyang Foods Co., Ltd.

Companies: Samyang Foods Co., Ltd.; Nongshim Co., Ltd.; Ottogi Co. Ltd.; Korea Yakult Co. Ltd.; Rockman Co. USA, Inc.; M.T. Trading Corp.; The Plaza Co.

Cases: Antitrust CaliforniaNews