Lear wants court to approve $8.75 million settlement over price-fixing suit

Article by Christian Andrei, on May 12, 2014

Lear Corp. will ask United States District Judge Marianne Battani in Detroit to approve an $8.75-million settlement to resolve accusations that it took part in a conspiracy to hike prices of wire harness components between 2000 and 2010 in a multi-district litigation lawsuit.

The civil cases are distinct from the ongoing global criminal probe into price fixing in the automotive supply chain. Antitrust authorities in North America, Europe and Asia are currently probing into the matter. In the US, federal anti-trust authorities so far have imposed around $2.29 billion in fines on auto suppliers, most of them from Japan.

The US Justice Department disclosed in April that 33 people have been charged while 26 companies have either pleaded guilty or agreed to plead guilty.

Lear’s settlement agreement include a $4.75 million payout to the lawsuit’s “direct purchasers,” or other carmakers that purchased the parts at colluded prices; a $3 million payout to car buyer plaintiffs; and a $1 million payout to dealerships part of the court case.

The agreement also required Lear to put up $370,263 of its own cash and acquire the remaining assets held in reserve from its Chapter 11 bankruptcy reorganization from 2009 for “disputed claims.”

Lear will attend a hearing on May 27 before U.S. Bankruptcy Judge Allan Gropper in New York to approve the use of the assets for the settlement. Lear said in a filing with the U.S. Securities and Exchange Commission that it maintains not violated any law in connection with price fixing scandal.

It noted that the conduct alleged by plaintiffs relates to periods prior to its bankruptcy emergence.

Topics: lear

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries