In a move to resolve allegations of anti-competitive conduct in the automotive industry, Chiyoda Manufacturing Corporation and Chiyoda USA Corporation (collectively “Chiyoda”) have agreed to a $1.915 million settlement. The class action suit accused Chiyoda of collusion in bid-rigging, market allocation, and price-fixing of Automotive Wire Harness Systems. This was one of several lawsuits In Re Automotive Parts Litigation, a massive MDL against multiple defendants in the automotive manufacturing industry. In addition to the monetary compensation, Chiyoda committed to a 24-month period post-judgment during which it will not engage in activities that could be interpreted as per se violations of Section 1 of the Sherman Act such as price-fixing or bid-rigging related to the sale of Automotive Wire Harness Systems.
The suit’s resolution imposes financial repercussions on Chiyoda, reflecting a broader push against purported unlawful business practices within the automotive parts industry. The aggrieved class, comprising consumers and businesses that may have overpaid for new vehicles or replacement parts due to the alleged conspiracy to inflate prices, stood to benefit from the settlement sum. Though the defendants in the lawsuit agreed to settle, they denied any allegations of misconduct or liability.