Dell moves to sue five Asian suppliers

17 March 2010

17 March 2010 | Jake Kanter

Electronics firm Dell has filed a lawsuit against five of its Asian suppliers over allegations they colluded to fix prices.

The lawsuit, filed in a federal court in San Francisco and seen by SM, alleged that since 1996 five technology vendors, based in Japan and Taiwan, conspired to sell Dell Liquid Crystal Display (LCD) panels at “artificially inflated prices”.

Over the past two years, several suppliers have pleaded guilty in the US to fixing the price of the LCD panels. These vendors have agreed to pay total combined criminal fines of $860 million (£560 million). In pleas to the Department of Justice (DoJ), two of these vendors specifically admitted to overcharging Dell. The DoJ’s investigation into overall LCD supply market, price-fixing admissions and allegations is ongoing.

Dell is seeking “appropriate damages” for the alleged price-fixing, but did not reveal any figures.

“Dell brings this action on behalf of itself and its affiliates to recover for antitrust and other harms arising from billions of dollars of purchases at artificially inflated prices, over several years, of thin film transistor-liquid crystal display panels, or products containing TFT-LCD panels,” an extract from the 61-page complaint said.

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