Antitrust Law Daily Wrap Up, ANTITRUST NEWS: $13.6 million antitrust fine imposed on automotive air conditioning manufacturer, (Nov 6, 2013)

By Tobias J. Gillett, J.D., LL.M.

Automotive air conditioning system manufacturer Valeo Japan Co., Ltd. was fined $13.6 million for its involvement in a conspiracy to rig bids for, fix prices of, and allocate the supply of the systems and related components by the federal district court in Detroit. Judgment in the matter was entered yesterday (U.S. v. Valeo Japan Co., Ltd., Criminal No. 13-cr-20713, Steeh, G.).

A one-count felony charge filed on September 26 alleged that Valeo and its co-conspirators conspired to rig bids for, fix prices of, and allocate the supply of air conditioning systems sold to Nissan North America, Suzuki Motor Corp., and Fuji Heavy Industries Ltd., better known as Subaru, from April 2006 until February 2010. In a plea agreement, Valeo pleaded guilty to the charge and agreed to pay the $13.6 million criminal fine.

The court’s order imposes the fine pursuant to the plea agreement, as well as a $400 special assessment also provided for in the agreement. However, as in the agreement, the judgment does not provide funds for restitution. The agreement provided that the parties would recommend that no term of probation be imposed, and the judgment does not include such a term. Under the agreement, Valeo also must cooperate fully with government’s investigation of the air conditioning system market.

The case is No. 2:13-cr-20713-GCS-PJK.

Attorneys: Brian Byrne (Cleary Gottlieb Steen & Hamilton LLP) for Valeo Japan Co., Ltd. Stephen H. McCahey for U.S. Department of Justice.

Companies: Valeo Japan Co., Ltd.

News: Antitrust AntitrustDivisionNews