Computing

Hard drive suspension assembly makers face a certified class action lawsuit over a 13-year price-fixing cartel

A US federal court has certified an end-user class action lawsuit against major hard drive suspension assembly manufacturers for a 13-year price-fixing conspiracy spanning 2003 to 2016. The defendants, including TDK Corporation, NHK Spring, Hutchinson Technology, Magnecomp, and SAE Magnetics, collectively controlled approximately 97% of the global market for hard disk drive suspension assemblies. According to unredacted court documents, the manufacturers conspired to fix prices, allocate market shares targeting a 40/40/20 split, and exchange sensitive pricing and capacity data. They also actively plotted to push out weaker competitors like Hutchinson, which TDK eventually acquired in 2016. This civil litigation follows regulatory actions and criminal investigations by the Japan Fair Trade Commission, the US Department of Justice—which fined NHK Spring $28.5 million in 2019—and Brazil's Administrative Council for Economic Defense. The certified end-user class includes anyone in participating US states who purchased standalone hard drives or computers containing them during the conspiracy period. While class certification has been achieved, no settlement funds are currently available as the case must still proceed to trial.

Tech4K StaffVideo report

A US federal court has certified an end-user class action lawsuit against major hard drive suspension assembly manufacturers for a 13-year price-fixing conspiracy spanning 2003 to 2016. The defendants, including TDK Corporation, NHK Spring, Hutchinson Technology, Magnecomp, and SAE Magnetics, collectively controlled approximately 97% of the global market for hard disk drive suspension assemblies. According to unredacted court documents, the manufacturers conspired to fix prices, allocate market shares targeting a 40/40/20 split, and exchange sensitive pricing and capacity data. They also actively plotted to push out weaker competitors like Hutchinson, which TDK eventually acquired in 2016. This civil litigation follows regulatory actions and criminal investigations by the Japan Fair Trade Commission, the US Department of Justice—which fined NHK Spring $28.5 million in 2019—and Brazil's Administrative Council for Economic Defense. The certified end-user class includes anyone in participating US states who purchased standalone hard drives or computers containing them during the conspiracy period. While class certification has been achieved, no settlement funds are currently available as the case must still proceed to trial.

A US federal court has certified an end-user class action lawsuit against major hard drive suspension assembly manufacturers for price-fixing. The conspiracy allegedly spanned 13 years, from January 1, 2003, to December 31, 2016, artificially inflating HDD prices.

Defendants TDK, NHK Spring, Hutchinson, Magnecomp, and SAE Magnetics collectively controlled 97% of the global suspension assembly market. Court documents reveal the companies agreed to a 40/40/20 market share split and regularly exchanged sensitive pricing and capacity information.

The civil lawsuit follows regulatory actions, including a $28.5 million criminal fine paid by NHK Spring to the US Department of Justice in 2019. TDK and NHK Spring allegedly conspired to push competitor Hutchinson out of the market before TDK ultimately acquired it in 2016.

Chapter guide

Introduction to the CartelAn overview of the Japan Fair Trade Commission's early antitrust statements and the raid on hard drive component manufacturers.The Certified Class ActionDetails on the US class action lawsuit certified for end-users who purchased hard drives between 2003 and 2016.Gamers Nexus Merch SegmentA showcase of custom PC component mouse mats, coasters, and CPU trays from the Gamers Nexus store.History of the Hard Disk DriveA look back at the 1956 IBM RAMAC 305, the progenitor of modern hard drives, and its mechanical arm.How Suspension Assemblies WorkA technical explanation of modern HDD suspension assemblies, flying heights, and head crashes.Global Government InvestigationsA timeline of antitrust investigations and fines levied by the JFTC, US DOJ, and Brazil's CADE.Market Consolidation and the 2011 FloodsHow acquisitions and the 2011 Thailand floods consolidated the HDD component market.The Price-Fixing ConspiracyUnredacted court documents detailing the 40/40/20 market share agreement and executive communications.Targeting Competitors and Next StepsHow the cartel conspired to eliminate Hutchinson Technology and the current status of the lawsuit.

Worth noting

  • The video contains promotional segments for Gamers Nexus merchandise, which acts as a self-sponsorship.
  • While the class action lawsuit has been certified, the court has not yet ruled on the merits of the case, and no settlement funds are currently guaranteed or available.
  • The timeline for resolving this class action could be lengthy, as similar historical hardware antitrust cases like the DRAM litigation took over a decade to settle.

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