A New York based distributorship has filed a case in a Brooklyn district court alleging that a large number of Asian companies conspired to fix prices on LCD displays.
Electrograph Systems Inc named the defendants in the case as Epson, Hitachi, Sharp, Toshiba, Toshiba Matsushita, Sanyo, LG Display, Samsung, AU Optronics, Chi Mei Optoelectronics, CMO Japan, Nexgen Mediatech, Chunghwa Picture Tubes, Tatung, Hannstar Display and Mitsui & Co.
The filing claims that “the defendants and their co-conspirators formed an international cartel which conducted a long running conspiracy extending at a minimum from at leasy January 1996 through at least December 11, 2006.”
It continues: “The purpose and effect of the conspiracy was to fix, raise, stabilise and maintain prices for Thin Film Transistor Liqid Crystal Display panels.
The effect of the alleged conspiracy ran into billions of dollars, according to Electrograph. The conspirators, the filing alleges, met or talked to agree on product prices and as new producers entered the market, the new producers also agreed to fix prices and to control supply.
“Defendants’ conspiracy included agreements on the prices at which defendants would sell TFT-LCD products to their own corporate subsidiaries and affiliates, as well as their co-conspirators.”
The filing pointed out that five of the defendants – LG, Sharp, Chunghwa, Hitachi and Epson have pleaded guilty to a fixed price conspiracy.
Electrograph said it bought TFT LCD products and so suffered damages and is bringing the action to recover overcharges it believes it paid during the relevant period. Electrograph Systems is a value added wholesale distributor of display technology.