Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Hitachi executive agrees to 15-month prison term, $20K criminal fine, (Apr 24, 2015)

By Greg Hammond, J.D.

Takashi Toyokuni, a former manager and director for Hitachi Automotive Systems Ltd., pleaded guilty yesterday to allegations that he participated in a global conspiracy to rig bids for and fix the prices of alternators and starters sold in the United States. He will serve 15 months in a U.S. prison and must pay a $20,000 criminal fine (U.S. v. Toyokuni, Case No. 2:14-cr-20559).

As part of the Justice Department’s ongoing investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, a federal grand jury in Detroit returned an indictment against Toyokuni and three other Hitachi executives in September 2014. The indictment alleged that the executives conspired to fix the prices and rig bids for air flow meters, alternators, electronic throttle bodies, fuel injection systems, ignition coils, inverters, motor generators, starter motors, and valve timing control devises sold to a number of motor companies in the United States and abroad.

“The defendant today accepted responsibility for his role in creating anticompetitive agreements in the automotive industry that undermined the marketplace and harmed U.S. businesses and consumers,” stated Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “As a result of the many companies and individuals who have accepted responsibility during this investigation, we are transforming a critical industry into a competitive marketplace, which will greatly benefit U.S. consumers.”

Toyokuni was charged with price fixing and bid rigging in violation of the Sherman Act, which carried a maximum penalty of a $1 million criminal fine for individuals and 10 years in prison. To date, 52 individuals have been charged in the government’s ongoing investigation into bid rigging, market allocation, and price fixing in the auto parts industry. Further, 34 companies have pleaded guilty or have agreed to plead guilty and have agreed to pay over $2.4 billion in fines.

Attorneys: Pamela Marple (Greenberg Traurig, LLP) for Takashi Toyokuni. Mark C. Grundvig, U.S. Department of Justice Antitrust Division.

Companies: Hitachi Automotive Systems Ltd.

News: Antitrust AntitrustDivisionNews