World News

Industry news and insights from Europe and around the World

UK News

Latest news and developments in the United Kingdom

Products

Keep up-to-date with the latest new products and technology

Features

General articles, applications and industry analysis

Compressor price-fixers in $48.4m US deal

3764494_sUSA: The refrigeration compressor manufacturers caught up in price-fixing allegations in 2009 have struck a $48.4m deal to settle a class action in the USA.

This latest class action settlement will cover direct purchasers of hermetic compressors purchased in the USA between February 2005 and the end of 2008 and will provide up to $48.4m and an additional $750,000 to notify class members.

The lawsuits involve Whirlpool, Panasonic, Tecumseh, Embraco and Danfoss Flensburg. No settlement was reached with Appliances Components Companies SpA or its US subsidiary ACC USA, LLC, because the companies went into administration at the end of last year.

Tecumseh product buyers are eligible for a portion of a $7m fund, Embraco plaintiffs are eligible for a portion of a $30m settlement account, Danfoss Flensburg purchasers are covered by a $3.5m account and Panasonic refrigerator compressor buyers will be paid a percentage of a $7.9m account set up for the settlement.

If approved, the refrigeration antitrust class action settlement would resolve litigation that began in February 2009 when competition authorities made simultaneous raids on the compressor manufacturers’ offices worldwide.

A huge amount of money has already been paid by the defendants in fines and class actions. In October 2009 Embraco agreed to pay $56.5m to settle its compressor cartel allegations in Brazil.

In October 2010, in the US District Court in Detroit Embraco and Panasonic agreed to pay $91.8m and $49.1m, respectively, in cartel fines. A year later Danfoss agreed to pay a $3m fine in the same court for its role in the international conspiracy.

Panasonic and Embraco North America were each fined $1.5m by a Canadian Federal Court for their parts in the price fixing conspiracy in Canada in November 2010 but the largest single total fine was the €161m penalty imposed by the European Commission in 2011. Danfoss was fined €90m by the EC, Appliances Components Companies SpA and its subsidiary Elettromeccanica SpA were fined €9m, Embraco and parent Whirlpool SA €54,530,000 and Panasonic €7,668,000.

Tecumseh, the whistle-blower in the conspiracy received full immunity from fines.

Latest News

28th March 2024

Hudson warns of unsafe US recovery cylinders

USA: The US refrigerant supplier and reclaimer Hudson Technologies has warned of illegal and unsafe recovery cylinders entering the US market.
28th March 2024

Topical talks at Bath breakfast meeting

UK: The next South West South Wales Refrigeration Society breakfast briefing will feature talks from three experienced and knowledgable speakers on varied refrigeration and air conditioning topics.
28th March 2024

CO2 compressor for multiple applications

ITALY: Frascold’s new TK HD series transcritical CO2 compressors are designed for a wide range of refrigeration and air conditioning applications, as well as high-temperature heat pumps up to 100°C.
28th March 2024

Copeland releases 50hp scroll in Asia

CHINA: US compressor manufacturer Copeland is to launch a 50hp scroll for heat pump OEMs in Asia.
27th March 2024

Daikin redesigns Perfera R32 air conditioner

BELGIUM: Daikin Europe has announced a next generation All Seasons Perfera R32 air conditioner with redesigned indoor and outdoor units, making them easy to install and use.
27th March 2024

Press fittings go large

UK: Conex Bänninger has expanded its >B< MaxiPro range of press fittings with the addition of a 1⅝in fitting.