Updated: October 31, 2017
Status: Ongoing Case
Labaton Sucharow serves as class counsel in a class action lawsuit on behalf of direct purchasers of capacitors against several major capacitor manufacturers for allegedly engaging in a multiyear conspiracy to fix, raise, maintain, and/or stabilize the prices of capacitors sold in the United States. Capacitors are passive components that store electrical charge and stabilize the flow of current through a circuit. They are found in nearly every electrical product.
The court largely denied the defendants’ motions to dismiss direct purchasers’ consolidated amended complaint, and the plaintiffs are proceeding with discovery. As class counsel, we are responsible for leading discovery on certain defendants and issues.
In June 2017, the court granted final approval of the direct purchaser plaintiff settlements, totaling $32.6 million, with the defendants NEC-Tokin, Fujistu, Nitsuko, Okaya, and ROHM. In May 2018, the court granted final approval to a second round of direct purchaser plaintiff settlements, totaling $ 66.9 million, with defendants Hitachi and Soshin.
Additionally, the direct purchaser plaintiffs filed their motion for class certification. In July 2017, the defendants filed their opposition to plaintiffs’ motion.
Capacitors are passive components that store electrical charge and stabilize the flow of current through a circuit. They are found in nearly every electrical product. Several major Japanese capacitor manufacturers have been subject to dawn raids and inspections by officials in China, South Korea, and Japan. The United States has reportedly commenced a grand jury proceeding in connection with its own investigation into alleged cartel activity in the capacitors market. These investigations were all started after a capacitor manufacturer approached officials in China and the United States and sought leniency under both countries' respective amnesty programs. Similar applications were reportedly made to Korean and Singaporean officials.
In the United States., the Department of Justice's Corporate Leniency Policy permits provides an amnesty applicant with immunity from criminal prosecution exchange for disclosing the existence of a cartel and assisting the DOJ in the prosecution of its fellow cartel members under the Sherman Act.