Korean investors have moved to sue LG Display claiming that they lost millions after the Company failed to disclose their involvement in an LCD display price fixing scam.
In a legal action filed in the USA last week the investors said that that they have lost millions of dollars because of the company’s involvement in a price-fixing scheme in the thin film transistor liquid crystal display (TFT-LCD) panel market.
According to the Korean Times an LG Display official said, “LG Display believes this lawsuit overlaps with prior lawsuit that has already been filed in 2007 in the United States.”
Investors Son Eun-ja and Han Sang-ik filed a complaint with the U.S. District Court alleging that LG Display pumped up its profits in the LCD panel market, while keeping its participation in a price-fixing scheme with other companies a secret. Profits declined after the scheme ended in 2006, resulting in losses for investors.
The Korean newspaper said that LG Display’s role in the scheme came to light only when it agreed to pay a $400 million fine in an antitrust settlement with the U.S. Department of Justice in 2008. It was reportedly the second-largest criminal fine ever imposed by the department’s antitrust division. Two other companies, Sharp Corp. and Chunghwa Picture Tubes, have also paid fines of $120 million and $65 million, respectively.