Seventeen plaintiffs have sued Samsung, SK hynix, and Micron for allegedly coordinating supply cuts that inflated DRAM prices by 700% from 2016 to 2020. This lawsuit follows two previous high-profile legal cases against the companies, with challenges in proving collusion under antitrust laws.
The lawsuit filed in late June 2023 in the U.S. District Court for the Northern District of California accuses Samsung, SK hynix, and Micron of coordinating supply restrictions in the DRAM market, allegedly causing a significant price spike of approximately 700% over four years. This complaint is the third major attempt at legal recourse against these companies for price-fixing activities.
The first major legal battle between government and DRAM manufacturers occurred from 1998 to 2002, resulting in guilty pleas and fines totaling nearly $730 million across several companies, including major players like Samsung and Hynix. Executives from these companies faced prison time, while Micron, which admitted its part, avoided prosecution under a leniency agreement.
A second attempt for legal accountability arose in 2018 when Hagens Berman alleged collusion during a DRAM price upcycle in 2016-2017. However, this case was dismissed in 2020, a decision upheld by the Ninth Circuit in 2022, which pointed to lawful market behaviors rather than conspiratorial actions.
Under antitrust law, particularly the Sherman Act, merely parallel conduct among companies in a concentrated market is not illegal unless it is proven that an agreement was made. The Supreme Court's ruling in Twombly highlights the need for factual allegations that substantiate an actual agreement, making it challenging for plaintiffs to meet the legal standard required for antitrust claims.
If the current lawsuit succeeds, it could reshape how DRAM manufacturers conduct business and set important precedents regarding antitrust enforcement in the tech industry. Given the oversaturation and scrutiny surrounding this legal matter, its outcome will be closely monitored by stakeholders in the semiconductor market.
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Seventeen plaintiffs have sued Samsung, SK hynix, and Micron for allegedly coordinating supply cuts that inflated DRAM prices by 700% from 2016 to 2020. This lawsuit follows two previous high-profile legal cases against the companies, with challenges in proving collusion under antitrust laws.