Apple LCD suppliers accused of price fixing

SAN FRANCISCO—LG Display Co. agreed to pay the largest sum among defendants to settle a U.S. case in which it and numerous other manufacturers were accused of price fixing in the liquid crystal display market.

LG Display was one of three defendants that agreed to settle Wednesday the class-action case before the U.S. District Court, Northern District of California, San Francisco Division, according to court documents. LG, which is the world's second-largest producer of LCD displays by sales after Samsung Electronics Co., agreed to pay $380 million in damages, including civil penalties to state governments of $19 million.

AU Optronics Corp. AUO and Toshiba Corp. 6588.TO had also agreed to settle, at sums of $170 million and $21 million, respectively.

"This is the largest consumer class-action price-fixing settlement ever," said Joseph Alioto, a San Francisco attorney who co-led the case against the manufacturers, referring to the sum total of settlements made on behalf of consumers so far. He said Thursday the settlement adds to nearly $553.3 million that seven other manufacturers had agreed to pay earlier this year. In that settlement, Samsung had agreed to pay $240 million, with no civil damages, making it the second-biggest payment so far.

Mr. Alioto said a system will be set up to help consumers and companies claim their share of the combined $1.12 billion in damages. "Companies who fill out the forms could receive substantial amounts," he said, adding that claims could stretch back more than a decade, and he is concerned not everyone will have the right documentation of how much they paid and when.

"We understand the time period is difficult," he said.

The settlement is the latest twist in a case that has led to settlements from 10 manufacturers and prison terms for some executives. The case began in 2008 when the U.S. accused several Asian manufacturers, including Taiwan-based AU Optronics, of participating in a global price-fixing scheme for LCD displays. Hewlett-Packard Co., Apple Inc., Dell Inc. DELL and their numerous customers were the victims of the scheme, according to prosecutors.

For its part, Toshiba denied any wrongdoing in the LCD business, of which it no longer operates. "We entered the settlement to avoid further expenses and distraction of protracted litigation," the company said in an earlier statement. The company declined to comment further.

Toshiba's display business has since been spun off to become part of Japan Display Inc., a new company created in April that combined display operations of three Japanese firms.

In a statement, LG Display denied the allegations but agreed to reach a settlement "to resolve the consumer class action and eight actions filed by the attorneys general to avoid the expense and burden of protracted litigation."

A representative for AU Optronics didn't immediately respond to a request for comment, though earlier the representative confirmed the settlement without providing details.

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