Flextronics International USA alleges companies fixed prices of resistors

By Charmaine Little | Aug 8, 2018

SAN FRANCISCO – A Japanese electronic manufacturing company and others already facing a class action lawsuit are now looking at more price-fixing allegations in the U.S. District Court in the Northern District of California.

Trade Resized   ICS Media Database

SAN FRANCISCO – A Japanese electronic manufacturing company and others already facing a class action lawsuit are now looking at more price-fixing allegations in the U.S. District Court in the Northern District of California.

Flextronics International USA, a San Jose electronic product manufacturer, opted out of the class action and filed a lawsuit of its own against Hokuriku Electric Industry Co. on July 25. It alleged Hokuriku and other defendants HDK America Inc., Rohm Co. LTD and Rohm Semiconductor USA LLC alleging fraudulent concealment.

The plaintiff alleges the defendants “knowingly and intentionally engaged in a conspiracy to fix, raise, maintain and/or stabilize prices in the United States and elsewhere for resistors that were included in finished products imported to the U.S.,” Flextronics said in its lawsuit. 

It alleged that as a result, trade was limited and prices for linear resistors were inflated when Flextronics purchased them from Hokuriku.

Flextronics also claimed Hokuriku teamed up with a group of similar companies, which Flextronics labeled as Hokuriku’s co-conspirators, and increased prices for resistors for companies like Flextronics. 

Flextronics pointed out Hokuriku hid the alleged conspiracy, so there was no way for it to find out about it until foreign competition authorities launched an investigation in July 2015. Flextronics alleges the conspiracy started as early as July 2003.

As a result of the alleged injuries it incurred, Flextronics requested a trial by jury and for a judgment of triple the amount of damages it suffered because of the alleged illegal activity and requested prejudgment and post-judgment interest. Flextronics also asked for attorneys’ fees and related legal costs.

Flextronics is represented by Charles E. Tompkins of Williams Montgomery & John in Washington, D.C.; Eustace de Saint Phalle of Rains Lucia Stern St. Phalle & Silver in San Francisco; and Eric R. Lifvendahl of Williams Montgomery & John LTD in Chicago, Illinois.

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