Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese auto lighting equipment maker to pay $1.44 million fine for conspiring to fix prices, (Dec 2, 2013)
Organizations Mentioned:Panasonic Corp. | Stanley Electric Co. Ltd. | Stanley Electric Co., Ltd.
By Jeffrey May, J.D.
Japan-based, automotive lighting manufacturer Stanley Electric Co. Ltd. has agreed to plead guilty and to pay a $1.44 million criminal fine for its participation in a conspiracy to fix prices of lamp ballasts installed in automobiles, the Department of Justice announced last week. A one-count felony charge was filed on November 27 in the federal district court in Detroit. The plea agreement is subject to court approval (U.S. v. Stanley Electric Co. Ltd., Case 2:13-cr-20884).
Stanley Electric manufactures and sells automotive high-intensity discharge (HID) headlamps, which contain automotive HID lamp ballasts. It does not manufacture or sell lamp ballasts. The government alleged that Stanley Electric engaged in a conspiracy to rig bids for, and to fix the prices of, HID lamp ballasts sold to automakers in the United States and elsewhere.
The company issued a statement on November 28, acknowledging the plea agreement. According to the statement, Stanley Electric “has been fully cooperating with the DOJ’s investigation concerning automotive HID lamp ballasts.” Under the plea agreement, Stanley Electric has agreed to continue cooperating in the Justice Department’s ongoing investigation. The company also noted that “certain board members and executive officers of the Company will voluntarily return 30% to 10% of their monthly compensation for a three-month period starting January 2014.”
Stanley Electric is the 23rd company to be charged in the Justice Department’s current probe of auto parts industry. In July, Panasonic Corporation was charged with, among other things, conspiring to fix prices for HID ballasts. Panasonic has agreed to plead guilty to those charges. To date, it is the only other company that has admitted to participating in a conspiracy involving HID ballasts.
Companies: Panasonic Corp.; Stanley Electric Co. Ltd.
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