Antitrust Law Daily Wrap Up, ANTITRUST—W.D. Wash.: Costco awarded $10M in attorney fees for successful TFT-LCD price-fixing claim, (Jul 17, 2015)

By Edward L. Puzzo, J.D.

The federal district court in Seattle has ruled that Costco is entitled to recover $10 million in stipulated attorneys’ fees and costs under the Clayton Act and the Washington Consumer Protection Act, following its success in a thin-film transistor liquid crystal display panel (TFT-LCD) price-fixing action (Costco Wholesale Corporation v. AU Optronics Corporation, July 16, 2015, Jones, R.).

A series of class action suits were filed against manufacturer AU Optronics Corporation, its subsidiary AU Optronics Corporation America, and other manufacturers for allegedly engaging in a conspiracy to fix the prices of thin-film transistor liquid crystal display panels (TFT-LCDs) that were incorporated into LCD products sold throughout the United States. Retailer Costco indirectly purchased their LCD panels by buying finished products containing the panels from a number of different vendors and opted out of participation in a class of direct purchasers.

After a trial, a jury found on October 23, 2014 that AU Optronics and other electronics companies were members of a global conspiracy to fix prices of TFT-LCD panels. Based on the jury’s verdict and the court’s June 4, 2015 order, the court entered judgment for Costco and against LG Display Co., Ltd., LG Display America, Inc. (LGD), AU Optronics Corporation, and AU Optronics Corporation America (AUO) for $61,971,040.

Subsequently, Costco asserted that it was entitled to recover attorney fees and costs from LGD and AUO under Section 4 of the Clayton Act and the Washington Consumer Protection Act. LGD and AUO disputed this contention. The parties met and reached a compromise. As a result, the court entered an order on July 16, 2015, approving Costco’s recovery of $10 million in attorneys’ fees and costs incurred through June 12, 2015.

The case is Civil Action No. 2:13-cv-01207-RAJ.

Attorneys: Cori Gordon Moore (Perkins Coie) for Costco Wholesale Corp. Carl L. Blumenstein (Nossaman LLP), and Joseph P. Russoniello (Browne George Ross LLP) for AU Optronics Corp., and AU Optronics Corporation America. Allison B. Stein (Munger Tolles & Olson), and Lee F. Berger (Paul Hastings LLP) for LG Display Company, Ltd., and LG Display America Inc.

Companies: Costco Wholesale Corp.; AU Optronics Corp.; AU Optronics Corporation America; LG Display Company, Ltd.; LG Display America Inc.

Cases: Antitrust WashingtonNews