Electronic Powered Steering Assemblies Second Amended
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2:13-cv-01903-MOB Doc # 84 Filed 10/02/15 Pg 1 of 119 Pg ID 2476 REDACTED UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION In Re: AUTOMOTIVE PARTS 12-md-02311 ANTITRUST LITIGATION Honorable Marianne O. Battani ____________________________________________ ) In re: ELECTRONIC POWERED ) STEERING ASSEMBLIES ) 2:13-cv-01903-MOB-MKM ____________________________________________ ) ) SECOND AMENDED ) CONSOLIDATED CLASS THIS RELATES TO: ) ACTION COMPLAINT ) ALL END-PAYOR ACTIONS ) ) JURY TRIAL DEMANDED ____________________________________________ ) 2:13-cv-01903-MOB Doc # 84 Filed 10/02/15 Pg 2 of 119 Pg ID 2477 REDACTED Plaintiffs Halley Ascher, Gregory Asken, Melissa Barron, Kimberly Bennett, David Bernstein, Ron Blau, Tenisha Burgos, Kent Busek, Jennifer Chase, Rita Cornish, Nathan Croom, Lori Curtis, Jessica Decastro, Alena Farrell, Jane Fitzgerald, Carroll Gibbs, Dori Gilels, Jason Grala, Paul Gustafson, Tom Halverson, Curtis Harr, Andrew Hedlund, Gary Arthur Herr, John Hollingsworth, Leonard Julian, Carol Ann Kashishian, Elizabeth Kaufman, Robert Klingler, Kelly Klosterman, James Marean, Nilsa Mercado, Rebecca Lynn Morrow, Edward Muscara, Stacey Nickell, Sophie O’Keefe-Zelman, Roger Olson, William Picotte, Whitney Porter, Cindy Prince, Janne Rice, Robert Rice, Jr., Frances Gammell-Roach, Darrel Senior, Meetesh Shah, Darcy Sherman, Erica Shoaf, Arthur Stukey, Kathleen Tawney, Jane Taylor, Keith Uehara, Michael Wick, Thomas Wilson, and Phillip Young (“Plaintiffs”), on behalf of themselves and all others similarly situated (the “Classes” as defined below), upon personal knowledge as to the facts pertaining to themselves and upon information and belief as to all other matters, and based on the investigation of counsel, bring this class action for damages, injunctive relief, and other relief pursuant to federal antitrust laws and state antitrust, unfair competition, consumer protection and unjust enrichment laws. Plaintiffs demand a jury trial and allege as follows: NATURE OF ACTION 1. This lawsuit is brought as a proposed class action against Defendants JTEKT Corporation, JTEKT Automotive North America, Inc. (together, “JTEKT Defendants” or “JTEKT”), Showa Corporation, American Showa, Inc. (together, “Showa Defendants” or “Showa”), Mitsuba Corporation, American Mitsuba Corporation (together, “Mitsuba Defendants” or “Mitsuba”), Mitsubishi Electric Corporation, Mitsubishi Automotive America, Inc., Mitsubishi Electric US Holdings, Inc. (collectively, “Mitsubishi Defendants” or “Mitsubishi”), NSK Ltd., NSK Steering Systems Co., Ltd., NSK Americas, Inc., NSK Steering Systems America, Inc. (collectively, “NSK Defendants” or “NSK”), Yamada Manufacturing Co., 1 2:13-cv-01903-MOB Doc # 84 Filed 10/02/15 Pg 3 of 119 Pg ID 2478 REDACTED Ltd., and Yamada North America, Inc. (together, “Yamada Defendants” or “Yamada”) (all as defined below, and collectively “Defendants”) and unnamed co-conspirators, manufacturers and/or suppliers of Electric Powered Steering Assemblies (defined below) for engaging in a long-running conspiracy to unlawfully fix, artificially raise, maintain and/or stabilize prices, rig bids for, and allocate the market and customers in the United States for Electric Powered Steering Assemblies. 2. Plaintiffs seek to represent all persons and entities who, during the period from and including January 1, 2005 through such time as the anticompetitive effects of the Defendants’ conduct ceased (the “Class Period”), purchased or leased a new vehicle in the United States not for resale which included one or more Electric Powered Steering Assembly(ies) as a component part, which were manufactured or sold by the Defendants, any current or former subsidiary of the Defendants or any co-conspirator of the Defendants. 3. “Electric Powered Steering Assemblies,” which are defined to include electric power steering motors, provide electronic power to assist the driver to more easily steer the automobile. Electric Powered Steering Assemblies link the steering wheel to the tires, and include the column, intermediate shaft, electronic control unit, but do not include the steering wheel or tires. “Pinion-Assist Type Electric Powered Steering Assemblies” provide power to the steering gear pinion shaft from electric motors to assist the driver to more easily steer the automobile. Pinion-Assist Type Electric Powered Steering Assemblies include an electronic control unit and link the steering wheel to the tires, but do not include the column, intermediate shaft, steering wheel or tires. Pinion-Assist Type Electric Powered Steering Assemblies are a subset of Electric Powered Steering Assemblies. The term Electric Powered Steering Assemblies, as used in this Complaint, includes Pinion-Assist Type Electric Powered Steering 2 2:13-cv-01903-MOB Doc # 84 Filed 10/02/15 Pg 4 of 119 Pg ID 2479 REDACTED Assemblies as well as all component parts of the assemblies, including the steering column, intermediate shaft, electronic control unit, and electric power steering motors (but not the steering wheel or tires). 4. The Defendants manufacture, market, and sell Electric Powered Steering Assemblies throughout and into the United States. The Defendants and other co-conspirators (as yet unknown) agreed, combined and conspired to fix, raise, maintain and/or stabilize prices, and allocate market shares for Electric Powered Steering Assemblies. 5. The U.S. Department of Justice’s (“DOJ”) Antitrust Division is currently conducting a broad criminal investigation into illegal price-fixing and bid-rigging in the automotive parts industry. As part of its criminal investigation, the DOJ is seeking information about unlawful anticompetitive conduct in the market for a number of different but related automotive parts, and the Federal Bureau of Investigation (“FBI”) has participated in raids, pursuant to search warrants, carried out in the offices of a number of major competitors in the automotive parts industry. The automotive parts investigation is the largest criminal investigation the Antitrust Division has ever pursued, both in terms of its scope and its impact on American consumers and businesses. The ongoing cartel investigation of price-fixing and bid- rigging in the automotive parts industry has yielded over $2.5 billion in criminal fines. The European Commission Competition Authority (“EC”) has also conducted dawn raids at the European offices of several automotive parts manufacturers. 6. On September 26, 2013, the DOJ announced that Defendant JTEKT Corporation agreed to plead guilty and to pay a criminal fine of $103.27 million for participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate markets, rig bids for, and to fix, stabilize, and maintain the prices of (1) bearings sold to 3 2:13-cv-01903-MOB Doc # 84 Filed 10/02/15 Pg 5 of 119 Pg ID 2480 REDACTED Toyota Motor Corporation, certain of its subsidiaries, and other Japanese automobile manufacturers and Japanese automobile component manufacturers in the United States and elsewhere, from at least as early as 2000 and continuing until as late as July 2011 and (2) electric powered steering assemblies sold to Nissan Motor Company Ltd. and certain of its subsidiaries in the United States and elsewhere, from at least as early as 2005 and continuing until as late as October 2011. The combination and conspiracy engaged in by Defendant JTEKT Corporation and its co-conspirators was an unreasonable restraint of interstate and foreign trade and commerce in violation of the Sherman Antitrust Act, 15 U.S.C. § 1. 7. Also on September 26, 2013, the DOJ announced that Defendant Mitsuba Corporation agreed to plead guilty and to pay a $135 million criminal fine for its role in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of certain automotive parts installed in automobiles sold in the United States and elsewhere. 8. Defendant Mitsuba Corporation’s guilty plea defines automotive parts to include, among other parts, electric power steering motors. Pursuant to its guilty plea, Mitsuba Corporation and its subsidiaries have pledged to cooperate in the DOJ’s automotive parts investigation with respect to electric power steering motors. Mitsuba Corporation’s guilty plea further provides that in exchange for it and its subsidiaries’ cooperation in the DOJ’s automotive parts investigation, including with respect to electric power steering motors, the DOJ will refrain from criminally prosecuting Mitsuba Corporation or its subsidiaries for price-fixing certain automotive parts, including electric power steering motors. 9. Also on September 26, 2013 the DOJ announced that Defendant Mitsubishi Electric Corporation had agreed to plead guilty and to pay a $190 million criminal fine for its 4 2:13-cv-01903-MOB Doc # 84 Filed 10/02/15 Pg 6 of 119 Pg ID 2481 REDACTED role in a conspiracy to rig bids for, and to fix, stabilize and maintain prices of certain automotive parts installed in automobiles manufactured and sold in the United States and elsewhere. 10. Defendant Mitsubishi Electric Corporation’s guilty plea defines automotive parts to include, among other parts, electric power steering motors. Pursuant to its guilty plea, Defendant Mitsubishi Electric Corporation and its subsidiaries have pledged to cooperate in the DOJ’s automotive parts investigation, including with respect to electric power steering motors. Mitsubishi Electric Corporation’s guilty plea further provides that in exchange for it and its subsidiaries’