Class Action Lawsuit Filed Against Samsung, Micron and Hynix for Alleged DRAM Price Fixing

Written by Jon Sutton on Sun, Apr 29, 2018 9:50 AM

A class action lawsuit has been filed against Samsung, Micron and Hynix by law firm Hagens Berman, accusing the memory manufacturers of colluding on alleged DRAM price fixing.

Demand for memory has been at record highs in the past two years, driving the prices up well beyond the MSRP, with DDR4 RAM costing upwards of twice as much as it did back in 2016. Hagens Berman doesn’t believe this is entirely down to limited supplies of DRAM though and alleges the trio of memory manufacturers have been colluding to drive the price upwards and extract more profit.

"What we've uncovered in the DRAM market is a classic antitrust, price-fixing scheme in which a small number of kingpin corporations hold the lion's share of the market," said Hagens Berman managing partner Steve Berman. "Instead of playing by the rules, Samsung, Micron and Hynix chose to put consumers in a chokehold, wringing the market for more profit."

Together, the trio of Samsung, Micron, and Hynix own 96% of the worldwide DRAM market, effectively maintaining complete control over pricing structures. While demand has been at stratospheric highs to rising memory in the mobile market, Hagens Berman believes these price increases have been above and beyond demand due to alleged collusion between the manufacturers.

The class action lawsuit applies to anyone in the US who purchased DRAM, or any device with DRAM, between  July 1, 2016 and Feb. 1, 2018. Hagens Berman has previous for this having successfully achieved a $300 million settlement for a similar action way back in 2006. At the time, Samsung and Hynix were found guilty of conspiring to fix prices and paid $731 million in fines and served 3,185 days jail time collectively. It would certainly be surprising if the two hadn’t learned from this error and repeated the same mistakes a decade later.

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06:19 Apr-30-2018

how can a company serve for a jail time? does the CEO or director goes to jail?

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06:23 Apr-30-2018

If you had read down in the comments you would know. It's not the company itself, but it's workers who were involved serving 3185 days, all together, not individually.

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21:29 Apr-29-2018

I've been saying this was happening for years now! There's no way in hell the price for dram should have stayed that high, these companies are greedy bastards!

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20:33 Apr-29-2018

Well this is what i hope will happen
https://gifer.com/VTKa

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13:41 Apr-29-2018

Could someone tell me why this is punishable? Isn't holding up stock until demand raises a well known business tactic? Isn't it their choice as to when they would want to sell their products? ( I'm not supporting or being against this )

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15:21 Apr-29-2018

It's punishable if it's out of norm, they must have done some, or alot, of research to make those statements. This is punishable because they are lying about the fact that something costs more then it does, or should. (That is if all of this is legit, which it very well might be. Im just not a guy to read something and believe it.) Overall business tactic or not, it's a bad move towards consumers, faking the fact that they don't have supply when they do just to get more money, greed is not something to brag about or praise, it is something that must stop

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16:17 Apr-29-2018

I see, was curious to know, thank you ^^


Why the down votes though? As i said i just wanted to know why... and wasn't supporting the statement lmao

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06:20 Apr-30-2018

Well the downvotes are just from some people that don't really try to see you are just asking a question, they may take it in a negative way because of their own interpretation of what you have said.
So don't be down about it. It's just internet things.

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21:16 Apr-29-2018

It's one thing to hold products for a possible future iteration in case the products already out in the wild are not selling well enough, and then it'd make sense to wait till the demand rises.


However, this alleges that they were lying that there's a shortage of DRAM, even though there's a huge demand for it. Intentionally jacking up prices on these grounds is very much punishable.


We'll know the truth when the investigation moves forward I suppose.

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13:30 Apr-30-2018

Withholding stock or raising prices is perfectly fine, that's not the issue. Market collusion is illegal though, particularly when it's 96% of the entire market (allegedly) colluding. They can do everything they did on their own fine, but as soon as they buddy up with other manufacturers to artificially affect prices of the global market it becomes an issue.

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11:56 Apr-29-2018

About time ! Been wondering why RAM prices have not gone down by a penny after all this time.

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11:25 Apr-29-2018

SSD prices droping, GPU prices finally droping, now imagine ram prices droping.

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07:45 Apr-30-2018

A new golden age. Where everything is finally cheap.

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13:25 Apr-30-2018

More like finally coming out of the Dark Ages, back into the reasonable-ish prices

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10:08 May-01-2018

Well, one can be optimistic. Perhaps a golden age will arrive sooner then people think.

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11:23 Apr-29-2018

Current prices are beyond reason, I hope justice hits them much harder then in 2006, they won't learn any other way.

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10:20 Apr-29-2018

I don't understand. How does a company serve jail time?

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11:25 Apr-29-2018

Let me rephrase: The people from Samsung and Hynix who were found guilty collectively served 3,185 days jail time

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11:49 Apr-29-2018

All of the workers? I dont get it

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13:01 Apr-29-2018

No, certain people from each company were found personally guilty, sent to jail, and their collective jail time amounted to 3185 days.

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10:09 Apr-29-2018

and who do u think paid those 700 mil dolars?We did,the consumers....

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