In re: Cathode Ray Tube (CRT) Antitrust Litigation

308 F.R.D. 606, 2015 WL 4127859
CourtDistrict Court, N.D. California
DecidedJuly 8, 2015
DocketMDL No. 1917; Master Case No. CV-07-5944-SC; Individual Case No. CV-14-2058-SC
StatusPublished
Cited by1 cases

This text of 308 F.R.D. 606 (In re: Cathode Ray Tube (CRT) Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Cathode Ray Tube (CRT) Antitrust Litigation, 308 F.R.D. 606, 2015 WL 4127859 (N.D. Cal. 2015).

Opinion

[609]*609 ORDER IN RE CLASS CERTIFICATION WITH RESPECT TO THE THOMSON AND MITSUBISHI DEFENDANTS

SAMUEL CONTI, District Judge

I. INTRODUCTION

Now before the Court is a motion by the Direct Purchaser Plaintiffs (“DPPs”) for Class Certification with respect to the Defendants Thomson and Mitsubishi.1 Thomson [610]*610has settled and stipulated to class certification, pending hearing.2 Accordingly, Mitsubishi is the only remaining Defendant. Mitsubishi opposes the motion.

The motion has been fully briefed,3 and the matter is appropriate for decision without oral argument per Civil Local Rule 7-l(b). As explained below, the Court now GRANTS DPP’s motion for class certification with respect to Mitsubishi.4

II. BACKGROUND

The parties are familiar with this case’s facts.5 Even so, a brief summary follows.

This MDL concerns allegations of a worldwide conspiracy to fix prices in the Cathode Ray Tube (“CRT”) market. CRTs are discrete products that can only be used as components in finished products (“CRT Products” or “finished products”). CRTs are therefore produced as Color Picture Tubes (“CPTs”), often used in televisions, and Color Display Tubes (“CDTs”), often used for computer monitors or small screen devices. The Named DPPs,6 the proposed class representatives, purchased primarily finished products7 containing CRTs, including CPTs and CDTs.

Meijer, Inc. and Meijer Distribution, Inc.; Nathan Muchniek, Inc.; Princeton Display Technologies, Inc.; Radio & TV Equipment, Inc.; Studio Spectrum, Inc.; and Wettstein and Sons, Inc., d/b/a Wettstein’s. Each has provided records of their purchase or described them in evidence provided. See Reply at 8-9.

DPPs now seek to certify a class of DPPs alleging harm, supported by the expert testi[611]*611mony of Dr. Jeffrey J. Leitzinger.8

A. The Market

An overview of the CRT market is helpful to understand DPPs’ theory of the case. During the “Class Period,” from March 1, 1995 to November 25, 2007, CRTs were the dominant components of televisions and computer monitors.9 CRTs are very expensive and therefore are alleged to represent large portions of the prices of the finished products that contain them. CRTs are not uniform: they differ in size, deflection yoke frequencies, resolutions, shadow masks, phosphors, glass bulbs, electron guns, size, and assembly. The two types of CRTs at issue in this case — CPTs and CDTs — are also components of different finished products (televisions and computer monitors, respectively). See Opp’n at 23.

DPPs allege Defendants and their co-conspirators formed an international price-fixing cartel to restrict the prices of CRTs. DPPs maintain that Defendants carried out their conspiracy through frequent group and bilateral meetings over the course of twelve years. The bilateral meetings were specifically arranged to accommodate co-conspirators who avoided the group meetings due to antitrust fears. The meetings were formalized and organized on three levels: (1) quarterly top-level meetings attended by CEOs and CRT business heads; (2) monthly management-level meetings attended by Sales VPs, for example; and (3) monthly or semimonthly working-level meetings attended by lower-level employees, who prepared materials and data for use in the management-and top-level meetings. DPP Ex. 31 at 4-8 (labeled 52-57), 11-12 (labeled 7374). These meetings were supplemented by golf outings among key executives. Id. at 13 (labeled 75).

The substance of all of these meetings concerned: (1) market updates; (2) market-share analysis; (3) discussion of recent customer negotiations; (4) analysis of global CRT supply and demand; (5) discussion of members’ compliance with earlier agreements; and (6) “AOB,” or “any other business” to include the time and location of the next meeting. Specifically, Defendants are alleged to have used these meetings to set prices, production levels, and market shares. The DPPs have submitted substantial documentary evidence, including meeting reports, e-mails, memoranda, and testimony documenting these meetings, Defendants’ efforts to police the conspiracy, and Defendants’ methods to conceal the conspiracy.

B. Investigations

American and international governmental agencies began investigating Defendants’ practices in 2007. Investigating agencies included: the U.S. Department of Justice (“DOJ”), the European Commission (“EC”), the Japanese Fair Trade Commission (“JFTC”), the Korean Fair Trade Commission (“KFTC”), the Canadian Competition Bureau (“CCB”) and the Czech Office for the Protection of Competition (“COPC”). Specifically as part of the DOJ’s investigation, Defendant Chunghwa disclosed the conspiracy for amnesty from criminal prosecution; SDI pled guilty to participation in the CRT conspiracy; and six former SDI, Chunghwa, LGE, and LPD executives have been indicted in association with the conspiracy. DPP Exs. 5-8.

The DPPs now propose to certify a class defined as:

All persons and entities who, between March 1, 1995 and November 25, 2007, directly purchased a CRT Product in the United States from any Defendant or any subsidiary or affiliate thereof, or any co-conspirator or any subsidiary or affiliate thereof. Excluded from the class are defendants, their parent companies, subsidiaries or affiliates, any co-conspirators, all governmental entities, and any judges or justices assigned to hear any aspect of this action.

[612]*612III. LEGAL STANDARD

Class actions play an important role in the private enforcement of antitrust actions. In re Citric Acid Antitrust Litigation, No. C-95-2963 FMS, 1996 U.S. Dist. LEXIS 16409, at *22, 1996 WL 655791 at *8 (N.D.Cal. October 2,1996). Courts therefore “resolve doubts in these actions in favor of certifying the class.” In re Rubber Chemicals Antitrust Litigation, 232 F.R.D. 346, 350 (N.D.Cal.2005). “Courts have stressed that price-fixing eases are appropriate for class certification because a class-action lawsuit is the most fair and efficient means of enforcing the law where antitrust violations have been continuous, widespread, and detrimental to as yet unidentified consumers.” In re TFT-LCD (Flat Panel) Antitrust Litigation (“LCDs”), 267 F.R.D. 583, 592 (N.D.Cal. 2010), amended in part, 2011 U.S. Dist. LEXIS 84476, 2011 WL 3268649 (N.D.Cal. July 28, 2011) (internal citations omitted).

Parties seeking class certification must, as “a threshold matter, and apart from the explicit requirements of Rule 23(a),” show an “identifiable and ascertainable class exists.” Mazur v. eBay Inc., 257 F.R.D. 563, 567 (N.D.Cal.2009) (since class would include non-harmed auction winners, this portion of the class definition was imprecise and over-broad). Upon making this showing, the Court then turns to Rule 23 of the Federal Rules of Civil Procedure

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Bluebook (online)
308 F.R.D. 606, 2015 WL 4127859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-cathode-ray-tube-crt-antitrust-litigation-cand-2015.