Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Florida AG Sues Automobile Parts Companies over Price Fixing of Instrument Panel Clusters, (May 10, 2013)

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

The Florida Office of the Attorney General has filed a complaint in the federal district court in Detroit, alleging that certain automobile parts companies fixed, stabilized, and maintained the prices of instrument panel clusters for automobiles (State of Florida, Office of the Attorney General, Department of Legal Affairs v. Nippon Seiki Co. Ltd., May 9, 2013).

Nippon Seiki Co. Ltd., N.S. International Ltd., and New Sabina Industries, Inc. (collectively, "Nippon Seiki") manufacture and distribute IPCs for automobiles. Automobile manufacturers purchase IPCs by issuing requests for quotation (RFQs) to suppliers such as Nippon Seiki and then awarding the IPC supply business for the lifespan of the automobile.

In 2010, the U.S. Department of Justice, as well as European and Japanese authorities, began an investigation into possible antitrust violations in the auto parts industry, according to the complaint. On November 8, 2012, Nippon Seiki pled guilty to violating the Sherman Act and agreed to pay a $1 million fine. In its plea agreement, Nippon Seiki admitted that it had participated in a conspiracy with other companies and individuals to allocate the supply of IPCs sold to manufacturers, to rig bids quoted to manufacturers, and to fix, stabilize, and maintain the prices of IPCs.

In the present case, the Florida Attorney General asserts that the conspiracy harmed the State of Florida and consumers, businesses, and government entities in the state by raising prices for automobiles. The Attorney General claims that Nippon Seiki’s fraudulent concealment of the conspiracy precludes application of the statute of limitations to its lawsuit because the concealment would have prevented the state from discovering the conspiracy until Nippon Seiki’s plea agreement was announced on August 28, 2012.

The complaint alleges violations of Section 1 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive and Unfair Trade Practices Act. It seeks damages, civil penalties, injunctions, and attorneys’ fees against Nippon Seiki and related entities and individuals.

The case is No. 2:13-cv-12061-TGB-DRG.

Attorneys: Pamela Jo Bondi, Attorney General, for the State of Florida.

Companies: Nippon Seiki Co. Ltd.; N.S. International Ltd.; New Sabina Industries, Inc.

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