Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Third-party payers seek approval of $2.5M sheet metal settlement, (Jul 29, 2015)

By Greg Hammond, J.D.

Fireman’s Fund Insurance Co. and National Trucking Financial Reclamation Services, LLC are seeking preliminary approval of a $2.5 million settlement with Gordon Auto Body Parts Co. Ltd. concerning claims that Gordon engaged in a conspiracy to fix the prices of aftermarket automotive sheet metal products sold in the United States. The plaintiffs claim that the settlement will deliver a real and substantial remedy to the settlement class without the risk or delay inherent in prosecuting the matter through trial and appeal (Fond Du Lac Bumper Exchange, Inc. v. Jui Li Enterprise Co., Ltd., Dkt. 2:09-cv-00852-LA).

Fireman’s Fund and National Trucking filed federal and state antitrust and consumer protection claims against Gordon and others, alleging a conspiracy to fix prices and restrict the output of aftermarket automotive sheet metal products. Both Fireman’s Fund and National Trucking reimbursed others for the purchase of the aftermarket metal products for end use.

The plaintiffs seek certification of a class consisting of all third-party payors who indirectly paid or reimbursed others for the purchase of aftermarket automotive sheet metal products for end use and not sale or resale, purchased anywhere in the United States between January 1, 2003, through the date notice is presented to the settlement class.

According to the memorandum in support of the motion for preliminary approval: (1) Gordon will pay $2.5 million for the benefit of the settlement class, with $2 million being placed into an escrow account following payment of a mandatory 20 percent Taiwanese withholding tax; (2) Gordon will work with plaintiffs to attempt to recover all or part of the withholding taxes paid; (3) Gordon will cooperate and aid the plaintiffs in pursuing and advancing the litigation against non-settling defendants; and (4) the plaintiffs will release their claims against Gordon.

The plaintiffs argue that preliminary approval of the settlement is appropriate because it provides significant relief to the settlement class without the risk or delay inherent in prosecuting the case through trial and appeal; class counsel have extensive experience in litigating complex class actions involving major antitrust issues and are of the opinion that the settlement is an excellent one, within the range of possible approval; and the parties have engaged in years of discovery and are well informed of the important facts and relevant legal issues. In addition, the plaintiffs argue that class counsel are well qualified to represent the interests of the settlement class, and the notice program satisfies all applicable requirements.

Attorneys: Andrew M. Purdy (Joseph Saveri Law Firm) for Fond du Lac Bumper Exchange Inc. Christopher M. Burke (Scott + Scott LLP) for Roberts Wholesale Body Parts Inc. Alfredo A. Bismonte (Beck Bismonte & Finley LLP) for Jui Li Enterprise Co. Ltd. Belinda S. Lee (Latham & Watkins LLP) for Tong Yang Industry Co. Ltd., Gordon Auto Body Parts, and Taiwan Kai Yih Industrial Co. Ltd. Cindy D. Hinkle (Buchanan Ingersoll & Rooney PC) for Auto Parts Industrial Ltd.

Companies: Fond du Lac Bumper Exchange Inc.; Roberts Wholesale Body Parts Inc.; Jui Li Enterprise Co. Ltd.; Tong Yang Industry Co. Ltd.; Gordon Auto Body Parts; Taiwan Kai Yih Industrial Co. Ltd.; Auto Parts Industrial Ltd.

News: Antitrust