LCD Makers Charged by New York AG over Price Fixing

Those that have been keeping track of the more recent events in terms of IT lawsuits will know that a number of LCD makers have been suffering the wrath of the US Department of Justice for having participated in a price fixing cartel some years back. A number of former executives even pleaded guilty already. Now, however, it seems that said companies may be in for an even harder time. What occurred was that the New York Attorney General decided it was time for it to also file an antitrust lawsuit against them.

The companies listed as accused in the lawsuit are Samsung Semiconductor, Sharp, Toshiba Corp, Toshiba Matsushita Display Technology, AU Optronics, Chi Mei Corporation, LG Display, Samsung Electronics, CMO Japan and Hitachi (and Hitachi Displays). They are based in Korea, Japan, the US or Taiwan and are charged with having participated, for a period of about ten years, in a price-fixing scheme that led to liquid crystal displays selling for more than they should have (the situation persisted from 1996 through 2006). The case was filed by New York Attorney General Andrew M. Cuomo and is looking to get damages for the prices paid by the state of New York and other public purchasers. Needless to say, the case also aims to force those involved to pay restitutions and civil penalties.

"Our investigation shows that an illegal cartel eliminated competition in the marketplace for LCD screens, made its own secret decisions to boost prices, and then took steps to make those high prices stick," Cuomo was reportedly cited as saying in a report made by Wall Street Journal.

"The state purchasers on whose behalf this action is brought and the taxpayers whose dollars financed those purchases have suffered substantial damages stemming from defendants' unlawful conspiracy," the filing said, according to reports by the Associated Press.