US: LCD case may change way price-fixers are fined forever

AU Optronics, which was fined $500 million by the Department of Justice for its role in an international LCD screen price-fixing scandal, is now challenging the interpretation of a statute that allowed authorities to levy such a large fine. It’s a contest that could possibly change the way price-fixers are fined. According to reports, AU Optronics has submitted the case to the US 9th Circuit Court of Appeals to dispute the way the statue was interpreted, which allowed maximum fines to be issued based on the gains from an offense. Before the trial against AU Optronics even began, a US district judge ruled that fines issued against those accused of fixing prices could be determined based on the collective gains of all parties involved; AU Optronics, however, says that the fines should have been determined based on gains made only by itself. Reports say the outcome of the appeal may have major effects for future price-fixing cases. If the $500 million fine is upheld, it will strengthen government decisions within similar cases, earning a strong advantage within price-fixing cases that involve large markets. According to one analyst, James McGinnis, an antitrust lawyer at Sheppard Mullin Richter & Hampton, if the fine is upheld it could lead to “literally catastrophic” fines issued in the future.