Delaware News

Attorney General Biden Announces $90 Million Nationwide Antitrust Settlement for Consumers Harmed by Alleged Computer Chip Price-Fixing Conspiracy

Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Tuesday, February 6, 2007



Attorney General Joseph R. Biden, III today announced a $90 million nationwide settlement with Samsung Semiconductor, Inc. and Samsung Electronics Company, Ltd. (“Samsung”), resolving allegations that Samsung and other major computer chip manufacturers fixed prices of Dynamic Random Access Memory (DRAM). The money paid is restitution for consumers and state and local government agencies that paid more for computers and other electronic devices because of the price-fixing.
Samsung admits no violation in the settlement, which is subject to court approval. Under the settlement terms, Samsung has also agreed to strong injunctive relief that will require the company to refrain from conduct that could substantially lessen competition and to cooperate with the states in continuing litigation against the other DRAM manufactures.
“Many people have become victims as a result of the price-fixing that duped consumers and various government agencies across the country,” Biden said. “This settlement should be a resounding message to all industry that the Department of Justice will not tolerate price-fixing and other profiting schemes that target consumers.”
Delaware, 39 other jurisdictions, and private classes continue to pursue their lawsuits in United States District Court for the Northern District of California in San Francisco, seeking damages, restitution, civil penalties and injunctive relief for consumers and governmental agencies who paid higher prices for electronics from 1998 to 2002 as a result of alleged price-fixing by at least seven more companies including Elpida, Hynix, Infineon, Micron, Mosel Vitelic, Nanya and NEC. The states’ suit arose from a multi-state investigation that began in 2004, following a federal criminal investigation that exposed a scheme where DRAM manufacturers profited at the expense of the consumers in the computer and electronics industry. The states’ complaint lays out details of the conspiracy, including an agreement by industry leaders to trim production in order to artificially raise prices.
According to the states’ complaint, the defendants violated federal and state antitrust laws by coordinating prices they charged for DRAM. Samsung, Hynix, Infineon, Elpida and numerous individuals have pleaded guilty to federal criminal price-fixing charges and collectively paid more than $730 million in fines.
The jurisdictions participating in the lawsuit include Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin

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Attorney General Biden Announces $90 Million Nationwide Antitrust Settlement for Consumers Harmed by Alleged Computer Chip Price-Fixing Conspiracy

Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Tuesday, February 6, 2007



Attorney General Joseph R. Biden, III today announced a $90 million nationwide settlement with Samsung Semiconductor, Inc. and Samsung Electronics Company, Ltd. (“Samsung”), resolving allegations that Samsung and other major computer chip manufacturers fixed prices of Dynamic Random Access Memory (DRAM). The money paid is restitution for consumers and state and local government agencies that paid more for computers and other electronic devices because of the price-fixing.
Samsung admits no violation in the settlement, which is subject to court approval. Under the settlement terms, Samsung has also agreed to strong injunctive relief that will require the company to refrain from conduct that could substantially lessen competition and to cooperate with the states in continuing litigation against the other DRAM manufactures.
“Many people have become victims as a result of the price-fixing that duped consumers and various government agencies across the country,” Biden said. “This settlement should be a resounding message to all industry that the Department of Justice will not tolerate price-fixing and other profiting schemes that target consumers.”
Delaware, 39 other jurisdictions, and private classes continue to pursue their lawsuits in United States District Court for the Northern District of California in San Francisco, seeking damages, restitution, civil penalties and injunctive relief for consumers and governmental agencies who paid higher prices for electronics from 1998 to 2002 as a result of alleged price-fixing by at least seven more companies including Elpida, Hynix, Infineon, Micron, Mosel Vitelic, Nanya and NEC. The states’ suit arose from a multi-state investigation that began in 2004, following a federal criminal investigation that exposed a scheme where DRAM manufacturers profited at the expense of the consumers in the computer and electronics industry. The states’ complaint lays out details of the conspiracy, including an agreement by industry leaders to trim production in order to artificially raise prices.
According to the states’ complaint, the defendants violated federal and state antitrust laws by coordinating prices they charged for DRAM. Samsung, Hynix, Infineon, Elpida and numerous individuals have pleaded guilty to federal criminal price-fixing charges and collectively paid more than $730 million in fines.
The jurisdictions participating in the lawsuit include Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin

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Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.