Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Sheet metal product purchasers seek final approval of $25M settlement, (Jul 24, 2015)

By Greg Hammond, J.D.

Purchasers of automotive sheet metal parts are moving for final approval of a $25 million settlement with a group of Taiwanese manufacturers over price fixing claims. The purchasers’ motion comes after the federal district court in Milwaukee granted preliminary approval of the settlement in April and May, 2015 (Fond Du Lac Bumper Exchange, Inc. v. Jui Li Enterprise Co., Ltd., Dkt. 2:09-cv-00852-LA).

The purchasers claim that the settling defendants—Tong Yang Industry Co., Ltd., Taiwan Kai Yih Industrial Co., Ltd., TYG Products, L.P., and Gordon Auto Body Parts Co., Ltd., as well as the non-settling defendants conspired to raise prices for aftermarket automotive sheet metal parts, resulting in purchasers paying higher prices than they otherwise would have paid but for the unlawful conduct. They argue that the settlement in this case is fair and reasonable because it provides substantial and immediate monetary relief to the class while avoiding the risks of class certification, summary judgment, trial, and appeal.

In further support of their motion, the purchasers claim that not a single class member has opted out of the settlement class and that no class member has filed an objection to the settlement or class counsel’s request for attorney fees and expenses. The settlements are the product of good faith, arm’s-length negotiations; are strongly endorsed by experienced class counsel; and the settlements follow several motions to dismiss, a motion for summary judgment, contentious pre-trial proceedings, and extensive discovery. Lastly, the plaintiffs claim that the Joint Notice Plan was implemented as approved by the court.

The motion asks the court to: (1) approve the settlements based on a finding that they are fair, reasonable, and adequate; (2) affirm certification of the settlement class and the appointment of class representatives and co-lead settlement class counsel; and (3) approve the proposed plan of allocation.

Attorneys: Jessica N. Servais (Heins Mills & Olson, P.L.C.), Jason S. Hartley (Stueve Siegel Hanson, LLP), and K. Scott Wagner (Hale & Wagner, S.C.) for Direct Plaintiffs.

Companies: Fon Du Lac Bumper Exchange, Inc.; Roberts Wholesale Body Parts, Inc.; Tong Yang Industry Co., Ltd.; Taiwan Kai Yih Industrial Co., Ltd.; TYG Products, L.P.; Gordon Auto Body Parts Co. Ltd.

News: Antitrust