Feeds

Lawsuit claims Micron fixed memory prices

After the period probed by the DoJ, too

Remote control for virtualized 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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
PEAK APPLE: iOS 8 is least popular Cupertino mobile OS in all of HUMAN HISTORY
'Nerd release' finally staggers past 50 per cent adoption
Apple spent just ONE DOLLAR beefing up the latest iPad Air 2
New iPads look a lot like the old one. There's a reason for that
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Microsoft fitness bands slapped on wrists: All YOUR HEALTH DATA are BELONG TO US
Wearable will deliver 'actionable insights for healthier living'
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Caterham Seven 160 review: The Raspberry Pi of motoring
Back to driving's basics with a joyously legal high
FTDI yanks chip-bricking driver from Windows Update, vows to fight on
Next driver to battle fake chips with 'non-invasive' methods
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.