Dealerships to Receive $335 Million In Payments Over Supplier Price-fixing Scheme
Roughly 8,000 U.S. dealers will share in a $335 million payday resulting from a colossal 2010 antitrust investigation. The issue? Suppliers were involved in a widespread price-fixing scheme that lasted decades, and nobody noticed until the FBI raided the offices of Yazaki North America Inc., Denso International America Inc. and Tokai Rika Group North America.
In the end, 65 individuals and 47 companies were charged by the Justice Department — resulting in over $2.9 billion in fines and jail time for a swath of fresh white-collar criminals.
However, none of that money made it to manufacturers, dealers, parts retailers, or consumers. Those players had to resort to filing civil suits in federal court against the companies. In 2012, the multitude of claims were consolidated and transferred to Judge Marianne Battani and the U.S. District Court in Detroit. Over $1 billion has been set aside for affected parties, with around $335 million of the sum going to dealerships.
Not all states are eligible, however. According to Automotive News, laws in 21 states prohibit indirect victims of price-fixing from recovering damages — leaving dealerships in Texas, Ohio, Washington, and many other corners of America to fend for themselves.
Figuring out who is owed what in the eligible states involves a level of tedium that is without equal. In addition to assessing which parts were affected and used by various manufacturers over several decades, volume also has to be taken into account. For dealerships, reimbursement is dependent upon vehicles sold over a fairly lengthy period, weighted by the model and the make.
Jonathan Cuneo, co-lead counsel on the legal team representing dealerships, said stores “with an active business throughout the class-[action] periods will receive thousands of dollars, with the largest dealer groups receiving more than six-figure payouts when all the cases are concluded.”
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Okay, I got it. To make reliable parts you need price fixing. How sad that American companies do not get it.
Any one get an offer to join the Takata class action lawsuit? I got a post card from airbagrecall.com which I found out was a law firm in TX. I did get a check for almost $ 2.00 from the settlement of credit card foreign transaction fees.