Antitrust Law Daily Wrap Up, ANTITRUST NEWS: California charges Hitachi in auto parts price fixing suit, (Jul 21, 2015)

By Greg Hammond, J.D.

Hitachi, Ltd., Hitachi Automotive Systems, Ltd., and Hitachi Automotive Systems Americas, Inc. have once again been accused of conspiring to suppress competition, rig bids for, and to fix prices of various automotive parts, according to a complaint filed by the California Attorney General in the U.S. District Court for the Eastern District of Michigan. Hitachi previously pleaded guilty to U.S. Department of Justice conspiracy claims for bid rigging and price fixing, agreeing to pay a $195 million criminal fine (In re Automotive Parts Antitrust Litigation, July 20, 2015).

The complaint alleges that Hitachi and others conspired to suppress and eliminate competition, from January 2000 until at least February 2010, by agreeing to rig bids for and to fix the price of a number of automotive parts, including starter motors, alternators, air flow meters, valve timing control devices, fuel injection systems, electronic throttle bodies, ignition coils, inverters, and motor generators. The defendants also fraudulently concealed the conspiracy and unlawful conduct by agreeing to meet at locations where the conspiracy was less likely to be detected; by agreeing to engage in illegal bid-rigging, which is by its nature self-concealing; and by agreeing to keep the existence of the conspiracy a secret, including the use of secret code names, the complaint asserts.

Counts I and II of the complaint alleges that Hitachi and co-conspirators engaged in a conspiracy or trust, which unreasonably restrained trade or commerce, and that the defendants conspired to fix prices of automotive parts during the period of the conspiracy, in violation of Section 1 of the Sherman Act and California’s Cartwright Act. Count III claims that Hitachi’s acts, omissions, misrepresentations, practices, and non-disclosures constituted a common continuing conduct of unfair competition including unfair, unlawful, and fraudulent business practices in violation of California’s Unfair Competition Law (UCL). Finally, Count IV asserts a claim for unjust enrichment.

California Attorney General Kamala D. Harris seeks a judgment that Hitachi violated the Sherman Act, Cartwright Act, and UCL; damages and trebled damages; restitution, including disgorgement of profits; pre- and post-judgment interest; maximum fines and civil penalties under California law; injunctive relief; and costs and reasonable attorney fees.

The case number is 2:15-cv-12564.

Companies: Hitachi, Ltd.; Hitachi Automotive Systems, Ltd.; Hitachi Automotive Systems Americas, Inc.

News: Antitrust StateUnfairTradePractices