Toshiba decided not to settle when faced with allegations of price fixing, and now the company may have to pay the price. A jury handed down a verdict in the District Court for the Northern District of California today, hitting the company with $87 million in damages as part of a class action suit. The civil suit, separate from the criminal charges some of its alleged co-conspirators faced, wrapped today with the decision to award consumers $70 million and gave $17 million to manufacturers who purchased the company's panels. Toshiba may not actually have to pay up, however, thanks to settlements struck by others caught up in the same scandal, which could cover the damages. Regardless, the company maintains its innocence and actually plans to pursue "all available legal avenues" to reverse the decision. For more of Toshiba's response, check out the PR after the break.
Toshiba Responds to Jury Verdict in a U.S. Class Action for LCD Price Fixing
TOYKO and IRVINE, Calif., July 3, 2012 /PRNewswire/ -- Toshiba Corporation (Toshiba) and its subsidiary, Toshiba America Electronic Components, Inc. (TAEC), announced today that a jury in the United States District Court for the Northern District of California (San Francisco) has issued a verdict against Toshiba in the amount of US$87 million due to alleged antitrust practices in the LCD business. Given credits for settlements by other defendants, Toshiba expects that it will not have to pay any damages as a result of this verdict, even after trebling under U.S. antitrust laws.
This class action was filed in 2007 by direct purchasers of LCD panels and related products in the United States.
Toshiba has consistently maintained that there was no illegal activity on its part in the LCD business in the United States, and Toshiba continues to hold that view. While Toshiba appreciates the jury's time and effort, Toshiba believes that the jury's verdict is in error as to the finding of wrongdoing on Toshiba's part. Toshiba plans to pursue all available legal avenues to correct that finding.
At this time, Toshiba does not plan to revise projections for fiscal 2012 business performance due to this matter.
Source: PR Newswire (http://s.tt/1gMe9)