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US: Japanese rubber company to pay further US$11m for price fixing

 |  December 17, 2017

In the most recent in a series of settlements, Japanese company Nishikawa Rubber Co. will pay US$11.9 million to settle price fixing and bid rigging claims brought by a class of auto dealer plaintiffs.

The settlement agreement received preliminary approval from Judge Marianne O. Battani of the US District Court for the Eastern District of Michigan on December 13.

According to the December 13 memorandum in support of the settlement agreement, the settlement is part of a Justice Department (DOJ) investigation into alleged price fixing, market allocation and bid rigging in the automotive parts market that began in February 2010.

The DOJ alleged that Nishikawa participated in a price fixing and bid rigging conspiracy in weatherstripping and other automotive body sealing products from approximately 2000 until at least September 2012.

Nishikawa sold these sealing products to Honda, Toyota and Subaru, according to the DOJ. In August 2016, Nishikawa pleaded guilty to conspiracy and agreed to pay a US$130 million fine.

According to the more recent settlement, the class of auto dealers directly or indirectly purchased the rigged-price Nishikawa products.

Full Content: The European Rubber Journal

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