In In re: Refrigerant Compressors Antitrust Litigation, Eastern District of Michigan Judge Sean F. Cox dismissed many of the indirect purchaser claims in multidistrict litigation alleging a price-fixing conspiracy in the market for refrigerant compressors. Indirect purchase claims against Panasonic and Embraco North America Inc., a Whirlpool subsidiary, were retained. After reports of a government investigation, the plaintiffs filed the 2009 case alleging that they paid supra-competitive prices for gas compressors for use in air conditioners and refrigerators. The court’s decision rested on the plaintiffs failure to meet Twombly’s heightened pleading standard.
Judge Cox also agreed to permit the direct purchaser plaintiffs to file a second amended complaint, including allegations concerning recent guilty pleas by two defendants and factual allegations about the alleged conspiracy.
In December, the European Commission fined Panasonic, Embraco, Danfoss A/S and Appliance Components Companies SPA a combined €161.2 million ($201.9 million) for operating a cartel from April 2004 until October 2007 in the EU.
The DOJ’s investigation resulted in 2010 guilty pleas from Panasonic and Embraco North America Inc. The companies were fined $49.1 million and $91.8 million, respectively.