Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Auto parts manufacturers allegedly fixed prices of steel tubes, (Aug 15, 2016)

By Greg Hammond, J.D.

Maruyasu Industries Co., Ltd. and other automotive parts manufacturers have unlawfully conspired to fix prices, rig bids, and allocate the market and customers in the United States for automotive steel tubes, according to a complaint filed by consumers in the federal district court in Detroit (Ascher v. Maruyasu Industries Co., Ltd., August 12, 2016).

Automotive steel tubes are used in fuel distribution, braking, and other automotive systems. The plaintiffs are consumers that allegedly purchased automotive steel tubes indirectly from one or more of the manufacturer defendants and their co-conspirators, the complaint asserts. In particular, the consumers claim that Maruyasu Industries Co., Ltd., Curtis-Maruyasu Industries Co., Ltd., and others conspired to suppress and eliminate competition in the automotive parts industry by agreeing to allocate the supply of, rig bids for, and to fix, stabilize, and maintain the prices of automotive steel tubes sold to vehicle manufacturers and others in the United States. As a result of the allegedly anticompetitive conduct, consumers purportedly paid artificially inflated prices for automotive steel tubes and thereby suffered antitrust injury to their business or property.

The consumers seek to represent all persons and entities who, during the period from and including December 2003 through such time as the anticompetitive effects of the defendants’ conduct ceased, purchased or leased a new four-wheeled passenger automobile, van, sports utility vehicle, crossover, or pickup truck in the United States for personal use and not for resale, which included one or more automotive steel tube(s) as a component part that were manufactured or sold by a defendant, any current or former subsidiary of a defendant, or any co-conspirator of the defendants.

The complaint alleges that the defendants violated the Sherman Act, 22 state antitrust statutes, and various state consumer protection and deceptive trade practices laws. The consumers seek damages, including treble damages; restitution and/or disgorgement of profits; a permanent injunction prohibiting the defendants from continuing, maintaining, or renewing the alleged conspiracy or entering into any similar conspiracy; pre- and post-judgment interest; as well as costs and attorney fees.

The case is No. 2:16-cv-12949-VAR-MKM.

Attorneys: E. Powell Miller (The Miller Law Firm, P.C.), Hollis Salzman (Robins Kaplan LLP), Steven N. Williams (Cotchett, Pitre & McCarthy, LLP), and Marc M. Seltzer and Terrell W. Oxford (Susman Godfrey L.L.P.) for Halley Ascher.

Companies: Maruyasu Industries Co., Ltd.; Curtis-Maruyasu America, Inc.

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