Dealerships to Receive $335 Million In Payments Over Supplier Price-fixing Scheme

Matt Posky
by Matt Posky
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.”

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  • Inside Looking Out Inside Looking Out on Nov 13, 2017

    Okay, I got it. To make reliable parts you need price fixing. How sad that American companies do not get it.

  • Heino Heino on Nov 14, 2017

    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.

  • Inside Looking Out In June 1973, Leonid Brezhnev arrived in Washington for his second summit meeting with President Richard Nixon. Knowing of the Soviet leader’s fondness for luxury automobiles, Nixon gave him a shiny Lincoln Continental. Brezhnev was delighted with the present and insisted on taking a spin around Camp David, speeding through turns while the president nervously asked him to slow down. https://academic.oup.com/dh/article-abstract/42/4/548/5063004
  • Bobby D'Oppo Great sound and smooth power delivery in a heavier RWD or AWD vehicle is a nice blend, but current V8 pickup trucks deliver an unsophisticated driving experience. I think a modern full-size pickup could be very well suited to a manual transmission.In reality, old school, revvy atmo engines pair best with manual transmissions because it's so rewarding to keep them in the power band on a winding road. Modern turbo engines have flattened the torque curve and often make changing gears feel more like a chore.
  • Chuck Norton For those worried about a complex power train-What vehicle doesn't have one? I drive a twin turbo F-150 (3.5) Talk about complexity.. It seems reliability based on the number of F-150s sold is a non-issue. As with many other makes/models. I mean how many operations are handle by micro processors...in today's vehicles?
  • Ravenuer The Long Island Expressway.
  • Kwik_Shift A nice stretch of fairly remote road that would be great for test driving a car's potential, rally style, is Flinton Road off of Highway 41 in Ontario. Twists/turns/dips/rises. Just hope a deer doesn't jump out at you. Also Highway 60 through Algonquin Provincial Park in Ontario. Great scenery with lots of hills.
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