Feeds

Lawsuit claims Micron fixed memory prices

After the period probed by the DoJ, too

Secure remote control for conventional and virtual desktops

US memory maker Micron has been hit with a class-action lawsuit that alleges the company and some senior executives conspired with other DRAMurai to fix prices between 24 February 2001 and 13 February 2003. That conspiracy, the complaint claims, resulted in Micron posting false and misleading financial results during the cited period to the company's benefit.

The lawsuit was filed in the Idaho District Court by San Diego lawfirm Lerach Coughlin Stoia Geller Rudman & Robbins on behalf of the City of Roseville Employees' Retirement System, EETimes reports. It alleges violations of the Securities Exchange Act of 1934 and seeks unspecified damages.

Since the Summer of 2002, the US Department of Justice has been investigating allegations of memory price-fixing that took place between April 1999 and June 2002. In 2004, it fined Infineon $160m for its role in the cartel. Subsequently, Hynix and Samsung likewise admitted their guilt and payed fines of $185m and $300m, respectively.

In November 2004, Micron coughed to the participation of certain executives in the cartel, but claimed the company as a whole was not at fault. It was able to avoid a fine by pledging to co-operate with the feds.

The latest lawsuit alleges that unnamed Micron staffers continued to be involved in price-fixing beyond the period probed by the DoJ. The complaint claims that this allowed Micron to post false earnings which inflated its share price and allowed the company to undertake a number of stock-based financial transactions with a better result than it might otherwise have achieved. The lawsuit also alleges insiders sold shares during the period, benefitting directly from the allegedly inflated share price. ®

The essential guide to IT transformation

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?