Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Court approves settlement of New York AG charges of price fixing by sellers of computer DRAM memory chips, (Mar 4, 2014)

By Linda O’Brien, J.D., LL.M.

New York Attorney General Eric T. Schneiderman announced today that consumers can now file claims to recover money due to them from a $310 million fund created as a result of settling litigation brought by New York and several other states against the major manufacturers of Dynamic Random Access Memory (“DRAM”) computer chips. The settlements, which were recently preliminarily approved by the court, arose out of claims by the New York Attorney General and other states that the major DRAM manufactures conspired to fix prices. Consumers who purchased devices containing DRAM chips, typically computers, between 1998 and 2002, when the alleged conspiracy was taking place, may now submit claims for compensation from the fund.

Following a federal investigation the DRAM industry, New York completed its own year-long investigation in 2006 and filed an antitrust lawsuit in federal court against DRAM manufacturers. The suit alleged that New York’s consumers overpaid millions of dollars for electronic devices containing DRAM. DRAM is a common form of memory chip found in desktop computers and other high-technology devices, such as laptop computers, printers and video game consoles.

The settlements between New York and several major DRAM manufacturers provide for compensation to individuals and businesses that purchased DRAM chips or devices containing DRAM chips in the United States from 1998 to 2002. The settlements permit claims by individuals and others who purchased products that contain DRAM from computer manufacturers, retailers, or through any other source. The settlements also require the DRAM manufacturers to implement antitrust compliance programs and enjoin them from engaging in certain conduct that would violate the antitrust laws.

To receive money from the settlement, eligible consumers must submit a claim form by August 1, 2014, with the settlements’ administrator. The amount of money received depends on the type and quantity of electronic devices a claimant has purchased, and the total number of claims made. Individuals who purchased DRAM or products containing DRAM may receive up to the entire amount of the overpayment they made due to the alleged price fixing and are guaranteed a payment of at least $10. Consumers are not necessarily required to have purchase receipts or other documents in order to file a claim.

Any consumer who purchased one or more of the following between 1998 and 2002 is eligible to make a claim: desktop computers; laptop computers; computer servers; computer graphics cards; printers; video game consoles; MP3 players; PDAs; DVD players; and digital video recorders. Consumers who purchased other technology devices also containing DRAM memory may be eligible to make a claim. Payments resulting from the settlement will be made after the court has granted final approval to the settlements.

“Illegal price-fixers are an affront to our free-market system and should not be tolerated,” said Attorney General Schneiderman. “New York has been a leader in antitrust enforcement for more than a century, and companies should be aware that my office will aggressively intervene to stop anti-competitive behavior and obtain compensation for injured New Yorkers.”

Companies: Infineon Technologies, AG; Micron Technologies, Inc.; Hitachi, Ltd.; Mitsubishi Electric Corp.; Samsung Semiconductor, Inc.; Toshiba Corporation; Winbound Electronics Corporation

News: Antitrust ConsumerProtection NewYorkNews