Auto Parts Maker SKF Escapes Fla. AG's Price-Fixing Suit
Resource from: Law360 Likes:193
Mar 26,2015
Law360, Los Angeles (March 25, 2015, 8:21 PM ET) -- A federal judge in Michigan on Tuesday dropped Swedish manufacturer AB SKF from an antitrust suit launched by Florida’s attorney general that was added to multidistrict litigation, saying the court wields no jurisdiction over the company because of its scant ties to the United States.
In a related decision also handed down on Tuesday, Eastern District of Michigan Judge Marianne O. Battani ruled Schaeffler USA Group Inc., affiliated with the German Schaeffler AG, must defend itself against the allegations of price collusion.
Judge Battani granted AB SKF’s motion to be dismissed from the suit, reasoning the Florida Office of the Attorney General made “bare allegations” of the Swedish company’s American contacts that don’t satisfy the due process requirements of the Fifth Amendment.
Referring to a July decision in the same court, “The jurisdictional evidence and allegations demonstrated that AB SKF does not manufacture or sell any products in the United States,” Judge Battani wrote in her decision on Tuesday. “In addition, it has no direct contacts with the United States other than through its subsidiary SKF USA.”
Florida Attorney General Pam Bondi sued AB SKF, Schaeffler AG and their U.S. divisions in 2014, alleging the companies and others colluded to artificially inflate the price of ball bearings.
Bondi said that between 2000 and 2011, the prices for ball bearings increased 45 percent despite falling demand in the auto industry. In a competitive market, falling demand would lead companies to decrease prices in order to attract new customers and to ensure their market share, according to the attorney general. Ball bearings are a vital part of many machines, especially automobiles.
The action has become part of multidistrict litigation launched by states across the country involving auto parts pricing.
Like AB SKF, the German parent of Schaeffler USA Group Inc. escaped the litigation because of a lack of jurisdiction. However, the judge did not do the same for its U.S. subsidiary.
Judge Battani denied Schaeffler USA’s motion to dismiss for failure to state a claim. The judge disagreed with the company’s assertion, ruling automobile dealerships and other plaintiffs involved in the multidistrict litigation “provided sufficient allegations for the court to infer a global conspiracy aimed in part at the United States."
“Class plaintiffs ... provided factual allegations that Schaeffler USA met in secret with its co-conspirators at trade shows and directly sold price-fixed bearings in the United States in a market that was ripe for anticompetitive conduct,” Judge Battani said.
Representatives of the Florida Office of the Attorney General, AB SKF and Schaeffler USA Group Inc. did not immediately respond to a request for comment on Tuesday.
Bondi is represented by Timothy Fraser of the Florida Office of the Attorney General.
AB SKF and SKF USA Inc. are represented by Debra H. Dermody and Michelle Mantine of Reed Smith LLP, and Howard B. Iwrey and Brian M. Moore of Dykema Gossett PLLC.
Schaeffler USA Group Inc. are represented by Stacy E. Frazier and Eric J. Mahr of WilmerHale.
The case is In re: Automotive Parts Antitrust Litigation and In re: Bearings, case number 2:12-md-02311, in U.S. District Court for the Eastern District of Michigan.
(Law360)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous Air Bearing Stage/Systems Introduced by PI
Next Changes in the Executive Board of Schaeffler AG
Next Changes in the Executive Board of Schaeffler AG
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
