Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Circuit City settles cathode ray tube price fixing claims against Technicolor, LG Electronics, (Jan 28, 2016)

By Linda O’Brien, J.D., LL.M.

The bankruptcy trustee for consumer electronics retailer Circuit City has agreed to settle its claims against Technicolor SA, LG Electronics, and various related entities in the multidistrict class action litigation alleging that the companies and other cathode ray tube (CRT) manufacturers were involved in an international price fixing conspiracy. The motion for entry of an order approving the settlements was filed on January 27 in the federal bankruptcy court in Richmond, Virginia (In re Circuit City Stores, Inc., Huennekens, K.).

The retailer had filed suit against numerous CRT manufacturers, asserting claims under the Sherman Act and various state laws. Circuit City alleged that it was an indirect purchaser of CRTs made by the defendants that were ultimately incorporated into finished products.

According to the motion, the settlements were the product of arm’s length negotiations by experienced counsel and after a careful investigation. Approval is warranted because each of the settlement agreements (1) represents a fair and equitable compromise, (2) is reasonable in light of the risks of further litigation, and (3) provides a material benefit to the beneficiaries of the bankruptcy trust.

If the proposed settlements are approved, the claims by Circuit City in the CRT price fixing action will be concluded.

The case is No. 08-35653-KRH.

Companies: Circuit City Stores, Inc.; Technicolor SA; LG Electronics, Inc.

News: Antitrust VirginiaNews