Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Taiwan auto parts maker agrees to pay $9M to settle price fixing litigation, (May 5, 2015)

By Linda O’Brien, J.D., LL.M.

In an action by direct purchasers of automotive sheet metal parts against a group of Taiwanese manufacturers for allegedly conspiring to fix prices of certain aftermarket automotive sheet metal parts, Gordon Auto Body Parts has reached an agreement to settle the direct purchasers’ claims, according to the plaintiffs’ motion for preliminary approval of class action settlement filed in the federal district court in Milwaukee (Fond Du Lac Bumper Exchange, Inc. v. Jui Li Enterprise Company, Ltd., May 4, 2015).

In the proposed settlement agreement, Gordon Auto Body Parts has agreed to pay $9 million into an escrow account, which will result in a settlement fund of at least $7.2 million, following payment of the 20 percent mandatory Taiwanese withholding tax. Gordon Auto Body Parts has also agreed to cooperate in the prosecution of antitrust claims against the remaining defendants.

According to the memorandum in support of the motion, the settlement falls well within the range of possible approval and achieves an excellent result for the class members. The settlement was achieved after five years of vigorous litigation, extensive discovery, and intensive arm’s length negotiations with the assistance of mediation. Further, the settlement reflects experienced counsel’s thorough consideration and balancing of the circumstances, including the risk of trial, expense of further litigation, relative strengths and weaknesses of the claims and defenses asserted by the parties, substantial benefits obtained for the class, financial condition of the defendant, and the uncertainty of enforcing a United States judgment in Taiwan.

The motion states that the settlement class satisfies the requirements for class certification under Federal Rule of Civil Procedure 23(a) of numerosity, commonality, typicality, and adequacy of representation. Finally, common questions of law and fact predominate over individual questions and a class action is superior to other methods for the adjudication of the controversy.

The plaintiffs also seek certification of the settlement class, described as all persons or entities in the United States that purchased aftermarket automotive sheet metal products directly from any of the defendants from January 1, 2003 through the date notice provided to the class.

This is the second settlement of the case. In March 2015, Tong Yang Industrial Co. agreed to pay $16 million to resolve the direct purchasers’ claims. In April 2015, the court granted preliminary approval of that settlement and certified the settlement class. Final approval of the Tong Yang settlement is set for August 2015.

The case is No. 2:09-cv-00852-LA.

Attorneys: Jason S. Hartley (Stueve Siegel Hanson, LLP), Vincent J. Esades and Jessica N. Servais (Heins Mills & Olson, P.L.C.), and K. Scott Wagner (Hale & Wagner, S.C.) for the direct purchaser plaintiffs.

Companies: Fond Du Lac Bumper Exchange, Inc.; Roberts Wholesale Body Parts, Inc.; Gordon Auto Body Parts Co., Ltd.

News: Antitrust WisconsinNews