HAGENS BERMAN

Date Filed: July 12, 2010
Court: U.S. District Court
Location: California

Consumers are taking legal action against several consumer electronic companies for allegedly manipulating prices of disc drives which, in turn, drove up prices for PlayStation 3, Xbox 360 and Wii in the United States.

The class-action lawsuit filed by Hagens Berman on behalf of consumers claims that makers of disc drives, common in popular gaming consoles as well as other hi-tech devices, allegedly conducted anticompetitive business practices that eliminated new market competitors and created artificially high prices.

The optical disc drive or ODD market has dramatically increased over the last two decades and is a multi-billion dollar industry worldwide. ODD products are common in a range of devices including gaming consoles and DVD players.

Since 2000, many of the world’s leading makers of ODD products, including Sony, Microsoft and Nintendo, came together through joint ventures and long standing business relationships to allegedly set high market barriers and fix prices on disc drives and related products, the lawsuit states. The lawsuit also states that the Department of Justice is currently investigating the technology industry for anticompetitive conduct and price-fixing of ODD products.

Attorneys with Hagens Berman believe these business practices created an anticompetitive marketplace by giving ODD industry leaders an uninterrupted opportunity to collaboratively discuss pricing, capacity utilization and other prospective market information.

The strong collaboration between ODD industry leaders caused potential and emerging competitors to refrain from entering the ODD market, the lawsuit states. Furthermore, the lawsuit claims that consumers were forced to pay inflated prices for ODD products.

Hagens Berman is representing consumers in the class-action lawsuit against ODD makers. If you purchased a gaming console including PlayStation 3, Xbox 360 and Wii after November 1, 2005, you are encouraged to join this case.

UPDATES:

June 4, 2010 – United States District Chief Judge Vaughn R. Walker appointed Steve Berman and Jeff Friedman with Hagens Berman as interim class counsel, representing plaintiffs in the class-action lawsuit filed against ODD makers in April 2010. According to the court order, the final appointment of class counsel will be made when and if a class of indirect purchaser plaintiffs is certified.

June 24, 2010 - Judge Walker believed the broad stay of discovery DOJ requested was not justified here. The court intends to allow the normal evidence discovery process to proceed against the likes of Sony, Samsung and other optical disc drive makers, and address any specific concerns raised by the government if and when they arise.