IN THE UNITED STATED DISTRICT COURT

Transcription

1 Case 3:10-cv SI Document 195 Filed 09/25/15 Page 1 of 5 Michael E. Haglund, OSB No mhar lundlðhk-law. com Michael K. Kelley, OSB No Kelle)'@hk-law.com HAGLUND KELLEY LLP 200 SW Market Street, Suite 1777 Portland, Oregon Phone: (503) Special Assistant Attomeys General for Plaintiff Tim D. Nord, OSB No Tim.D.Nord@doj.state.or.us Special Counsel Department of Justice 1162 Court StreetNE Salem, Oregon Telephone: (503) Fax: (503) Attomeys for Plaintiff State of Oregon IN THE UNITED STATED DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA (SAN FRANCISCO DIVISION) IN RE TFT.LCD (FLAT PANEL) ANTITRUST LITIGATION This Document Relates to Individual Case No, 3:10-cv-4346 SI STATE OF OREGON, ex relellenf. Rosenblum, AttorneY General, Case No. Master File No. 3:07-md-1827 SI DECLARATION OF TIM D. NORD IN SUPPORT OF MOTION FOR APPROVAL OF SETTLEMENTS The Honorable Susan Y. Illston V. Plaintift AU OPTRONICS CORPORATION, et al., Defendants. PAGE 1 _ DECLARATION OF TIM D. NORD HAGLUND KELLEY LLP 200 S\ry MARKET STREET, SUITE 1777 P0RTLAND'OR P LCA H 0 7 3

2 Case 3:10-cv SI Document 195 Filed 09/25/15 Page 2 of 5 I 2 J I2 13 t I7 18 T9 20 2l 22 I, Tim D. Nord, declare as follows: L I am an attorney licensed to practice in the State of Oregon and am an Assistant Attorney General for the State of Oregon, in which capacity I serve as Special Counsel for the Oregon Attorney General. In this capacity I represent the State of Oregon in this action. I make this declaration in support of the State of Oregon's Motion for Approval of Settlements. I have personal knowledge of the facts stated herein and, if called as a witness, I could and would testify competently to them. 2, I have been a practicing attorney for over 25 yearc and have been handling antitrust matters as antitrust counsel for the Oregon Attorney General's office for 11 years. 3. I participated in all negotiations that have resulted in the settlements that are now pending the Court's approval. Joining Oregon's litigation team were counsel from the law firm of Haglund and Kelley, all of whom have had substantial experience in both antitrust and complex litigation. All of the settlement agreements referenced herein are the result of arm's-length negotiations conducted by counsel experienced in antitrust class actions' 4. Prior to filing suit in this multi-district litigation ("MDL"), the State of Oregon engaged in extensive pre-litigation discovery independently and with other states, utilizing investigative subpoena authority and reviewing documents produced by the defendants in this MDL and other materials. Since filing this litigation and consenting to the Court's protective order, the State of Oregon continued its trial preparation by engaging in discovery as more fully explained in the Declaration of Michael Kelley in Support of Motion for Approval of Settlements ("Kelley Declaration"). 23 PAGE 2 -DECLARATION OF TIM D. NORD HAGLUND KELLEY LLP 200 SW MARKET STREET, SUITE 1777 PORTLAND'OR Tel: (503) lfax: (503) P LCA HO7 3

3 Case 3:10-cv SI Document 195 Filed 09/25/15 Page 3 of 5 5. Prior to commencing this litigation in 2010, the Oregon Attorney General entered into a settlement agreement with Chunghwa Pictures Tubes, Ltd (Chunghwa). This settlement did not require judicial approval. As part of this settlement, Chunghwa paid $ 1,250, to the state of Oregon on behalf of Oregon, Illinois and V/ashington Attorneys General. Oregon retained the sum of $203,062.00,for reimbursement of attomey fees and expenses which was deposited into Oregon's antitrust and consumer protection account pursuant to ORS for use in accordance with the laws governing the account. The funds received from Chunghwa will be taken into account as part of the Attorney General's fee application. 6. Chunghwa provided Oregon, and other states, sustained cooperation pre-filing, including documents and proffers' 7. The State of Oregon brought this enforcement action, asserting violations of Oregon state law which give rise to civil penalties. Oregon also made claims for disgorgement and unjust enrichment for governmental entities and for Oregon natural persons. Those claims were brought under Oregon's authority to sue for governmental entities and parens patriae authority under applicable state and federal laws. 8. As described in greater detail in the Kelley Declaration, Oregon has entered into settlements with all defendants identified in Oregon's Second Amended Complaint. I participated in the mediations and settlement negotiations that resulted in each of the settlements now pending Court approval. These settlements resolve all of the claims the Attorney General has brought including claims for civil penalties, government entity andparens patriae redress claims, and injunctive relief. Each settlement has been determined to be reasonable and was authorized and approved by the Oregon Attorney General. PAGE 3 _ DECLARATION OF TIM D. NORD HAGLUND KELLEY LLP 200 SW MARKET STREET, SulrE 1777 P0RTLAND, OR Tel: (503) lfaxt (503) P LCA H 0 7 3

4 Case 3:10-cv SI Document 195 Filed 09/25/15 Page 4 of J l t4 15 t6 T , The Oregon Department of Justice maintains a website ("AG LCD website") at to keep Oregonians apprised of the results on this litigation. My office will update the AG LCD website to inform Oregonians of the settlement approval process' 10. Oregon has prepared a draft notice of settlement ("Notice of Settlement") for natural persons and political subdivisions that will be posted on the AG LCD website and mailed directly to political subdivisions. A copy of the Notice of Settlement is attached hereto as The Oregon Attorney General also plans to provide a copy of the Notice of Settlement to identified trade associations and lobbying groups which represent Oregon political subdivisions and to request the organizations alert their members of this request for approval. 12. Oregon recently provided a similar notice in the Dynamic Random Access Memory (DRAM) Antitrust Litigation (MDL No. 1486). During that notice phase, my office developed and updated a list of mailing addresses for Oregon's political subdivisions. 13. In the DRAM case only two small local entities that would not have qualified for disbursement exercised their right to be excluded. No other Oregon political subdivisions sought to be excluded. I declare under penalty of perjury pursuant to the laws of the state of Oregon that the forgoing statements of fact are true and correct. 20 Executed tnir/!$uvseptember 2015,in Portland, oregon Nord PAGE 4 _ DECLARATION OF TIM D. NORD HAGLUND KELLEY LLP 200 SW MARKET STREET, StrtrE 1777 PORTLAND,OR Tel: (503) / Fax: (503) 225'1257 p Lc A i H0 7 3

5 Case 3:10-cv SI Document 195 Filed 09/25/15 Page 5 of 5 CERTIF'ICATE OF SERVICE 2 J I hereby certify that on the 25th day of September,2015,I electronically filed the DECLARATION OF TIM D. NORD IN SUPPORT OF MOTION FOR AppROVAL OF SETTLEMENTS, with the Clerk of the Court using the CM/ECF system, which will automatically send notification to the parties and counsel of record. HAGLLTND KELLEY LLP l2 13 I4 i5 t6 T7 18 I9 20 2T By K. Michael G. Neff, OSB No (Pro Hac Vice) mneff@hk-law.com Michael E. Haglund, OSB No (Pro Hac Vice) haglund@hk-law.com Michael K. Kelley, OSB No' (Pro Hac Vice) kelley@hk-law.com HAGLLIND KELLEY LLP 200 S.W. Market Street, Suite 200 Portland, Oregon Telephone: (503) Facsimile: (503) Special Assistant Attorneys General for Plaintiff State of Oregon Tim D. Nord, OSB No Tim.D.Nord@doj.state.or'us Oregon Senior Assistant Attorney General 1162 Court Street, NE Salem, Oregon Telephone: (503) Facsimile: (503) Attorneys for Plaintiff State of Oregon PAGE 1 _ CERTIFICATE OF SERVICE HAGLUND KELLEY LLP 200 SW MARKET STREET, sulre 1777 PoRTLAND,OR Tel: (503) leaxt (503)

6 Case 3:10-cv SI Document Filed 09/25/15 Page 1 of 7 Lncnl {oricn If You Bought a TV, Monitor, or Notebook Computer That Contained an LCD Flat Panel Screen, During the Yea rs 2002 to 2006' You May be Entitled to BenefTts from a Settlement. Please read this notice carefully as your legal rights are affected whether you act or do not act' PARA UNA NOTIFICACION EN ESPANOL, LLAMAR O WSITAR NUESTRO WEBSITE. The Oregon Attorney General filed a lawsuit against certain manufacturers of liquid crystal display ("LCD") flat panels. The lawsuit alleges that LCD manufacturers illegally agreed upon the pricing of LCD-flat panels. The Attomey beneral filed this actionln her law enforcement capacity and on behalf of the State of Oregon, Oregon natural persons, and all political subdivisions in Oregon and sought equitable relief, restitution, civil penalties and injunctive relief. Oregon has settled with all defendants for a total of $21,505,000 ("settlement Fund")' The State of Oregon, political subd'ivisions and Oregon natural persons may be entitled to a portion of the Settlement Fund. "Political subdivisions" includes all Oregon counties, cities, municipalities, public universities, school districts, special districts, and all other local government entities. "Oregon natural persons" means a human, not a business' Who Is Included? The State of Oregon and all Oregon political subdivisions or natural persons who indirectly purchased at any time during the years 2001 ø 2006, for their own use and not for resale, LCD panels incorporated in flat panel TVs, monitors or notebook computers. An indirect purchaser is someone that purchased products containing LCD flat panels from someone other than tire company that manufactured the flat panel component, such as from an electronics retailer or a device manufacturer other than one of the Defendants, What Are My Rights And OPtions? Exclude vourself: Oregon political subdivisions and Oregon natural persons have the right to exclude themselves from ttris altlon. rnã státe of oregon cannot be excluded. If you opt out, you will not be legally bound by this settlement, but you will not get any money or other benefits from this settlement. You will retain any rights you cunently trave, if any. please note that under Oregon law, authority to bring antitrust actions for indirect purchaser claims, iit e tirir action, was limited to actions by the Attorney General until January 1,2010, To opt-out, complete the opt-out registration online at or send a written letter stating that you want to be excluãed from the case: State of Oregon, ex rel Ellen F. Rosenblum v. AtJ optronics Corp. et al., case no. óv MO, The letter must include the case name, your name, address, telephone number, and signature' A letter on behalf of a political subdivision must include the entity's name, and the name, title, and signature of the person authorized to sign on brhulf of the entity. The letter must be postmarked on or before Month -,201-, and mailed to: Oregon LCD Settlement, c/o GCG, P'O' Box 10240, Dublin, Ohio 43017'5740' File a claim: Only Oregon natural persons need to file a claim to obtain benefits in this settlement, Claims can to the Settlement b.,o-plffinlin" or by mailiñg the claim form, available for download at www. ---Çom, Administrator. The claim from must be completed online or postmarked on or before Month The State of Oregon and political subdivisions that are owed money under the distribution plan will be contacted -,201-. and sent payment without any fufther action on their part' Do nothine: If you or the political subdivision you represent do nothing, you will continue to be represented by th" O.egñ Attorney General. you will be bound by the terms of this settlement, and will release Defendants and related entities-from any cläims you may have relating to the allegations in this lawsuit. Oregon natural persons that do not file a claim will not b; entitled to any benefits in this matter and will be bound by the terms of the settlement, Who Represents Me? The Attomey General of Oregon represents the State, Oregon political subdivisions, and Oregon natural persons. you do not have to pây the Attorney G.n.tui. The Attorney General will request the Court approve attorney fees and litigation costs in ai amount not to exceed 20o/o of the total Settlement Fund. Additional costs to administer the Settlements will also come out of the Settlement Fund. If you want to be represented by your own lawyer, and have that lawyer appear in Court for you, you must exclude yourself and hire an aftorney at your own expense. How Do I Get More Information? This Notice summarizes the lawsuits and the Settlements. You can get more information about the lawsuits and Settlements, the claims process or obtain a claim form at by calling l , or writing to: oregon LCD Settlemenf, clo GCG, P.O. Box 10240, Dublin, ohio , t ww\ry..com Page 1 of 7

7 Case 3:10-cv SI Document Filed 09/25/15 Page 2 of 7 WHAT THIS NOTICE CONTAINS BASIC INFORMATION 1. What is this Notice about? 2. V/hat are the lawsuits about? 3. What is a TFT-LCD Flat Panel? WHO IS INCLUDED 4. How do I know if I am included? 5. Who are Defendant companies? THE SETTLEMENTS' BENEFITS 6. V/hat do the Settlements Provide? 7. How much money can I get? 8. When will I get a payment? 9. What is the injunctive relief? REMAINING IN THE ATTORNEYS GENERAL'S ACTION 10. V/hat am I giving up if I stay in the lawsuits? EXCLUDING YOURSELF FROM THE ATTORNEY GENERAL'S ACTION 1 1. How do I get out of the Attorney General's Action? 12. If I don't exclude myself, can I sue for the same thing later? 13, If I exclude myself, can I still get benefits from the Settlements? THE LAV/YERS REPRESENTING YOU 14. Do I have a lawyer representing me? 15. How will the lawyers be Paid? TRIAL 16 V/ill there be atrial? I7. Will I get money after any trial? GET MORE INFORMATION 18. Where can I get more information? Page 3 Page 3 Page 4 Page 5 Page 6 Page 6 Page 6 PageT CALL TOLL FREE l OR VISIT PARA LINA NOTIFICACION EN ESPANOL, LLAMAR O VISITAR NUESTRO WEBSITE 2 Page 2 of 7

8 Case 3:10-cv SI Document Filed 09/25/15 Page 3 of 7 1. What is this Notice about? BASIC INFORMATION This Notice is to inform you about the settlement of litigation which may affect your rights. You have the right to know about the lawsuits and about your legal rights and options. The Court in charge is the United States District Court for the Northern District of California. The case is called In re TFT-LCD (Flat Panel) Antitrust Litigation, MDL No The Oregon Attorney General sued, and the companies being sued are called the Defendants (see Question 5). 2. IVhat are the lawsuits about? The Attorney General claims that the Defendants conspired to fix, raise, maintain or stabilize prices of TFT-LCD Flat Panels resulting in overcharges to consumers who bought flat panel TVs, monitors or notebook computers containing the TFT-LCD Flat Panels. The Defendants deny the Attorney General's allegations or that indirect purchasers suffered any overcharge' The Attorney General sought equitable relief, restitution and civil penalties and also sought injunctive relief to stop the Defendants' alleged illegal behavior and make sure that it doesn't happen in the future (see Question 9).The Court has not yet decided who is right' 3. What is a TFT-LCD Flat Panel? TFT-LCD Flat Panels (thin-film transistor liquid display panels) are the glass display panels used in many flat screen televisions, monitors and notebook computers. Monitors have vadous uses, including as desktop computers and TVs. Only indirect purchasers of TVs, monitors and notebook computers containing TFT-LCD Flat Panels are included in the Settlement' 4. How do I know if I am included? \ilho IS INCLUDED The Attorney General's lawsuit represents the State of Oregon (which includes all state government entities), and all Oregon political subdivisions or natural persons who indirectly purchased af any time durin g 2002 to 2006 for their own use and not for resale TFT-LCD panels incorporated in TVs, monitors andlor notebook computers. To be eligible, anatural person must have resided in Oregon at the time of his or her purchase and have purchased the products in Oregon. An indirect purchaser is someone that purchased LCD flat panels or products containing LCD flat panels from someone other than the manufacturer, such as from an electronics retailer. "Political subdivisions" include all Oregon counties, cities, municipalities, public universities, school districts, special districts, and all other local government entities. "Oregon natural persons" means a human, not a business. Two class actions, separate from the Attorney General's, settled claims with the Defendants - one related to indirect purchasers and one related to direct purchasers. These actions do not represent the State of Oregon, Oregon political subdivisions, or Oregon natural persons for fecovery of any money for indirect CALL TOLL FREE l OR VISIT WWW,-.coM PARA UNA NOTIFICACION EN ESPANOL, LLAMAR O VISITAR NUESTRO WEBSITE J Page 3 of 7

9 Case 3:10-cv SI Document Filed 09/25/15 Page 4 of 7 5. Who are the Defendant? The Defendants are manufacturers and/or suppliers of TFT-LCD Flat Panels. The Settling Defendant companies are: AU Optronics Corp.; AU Optronics Corp. America ("AU Optronics"); Chimei Innolux Corp. (formerly known as Chi Mei Optoelectronics Corp. and now known as Innolux Corp,); Chi Mei Corp.; Chi Mei Optoelectronics Corp.; Chi Mei Optoelectronics USA, Inc.; CMO Japan Co., Ltd. ("Chimei"); Epson Imaging Devices Corp. ("Epson"); HannStar Display Corp. ("HannStar"); Hitachi, Ltd.; Hitachi Displays, Ltd.; Hitachi Electronic Devices (USA), Inc. ("Hitachi Displays"); LG Display Co., Ltd.; LG Display America, Inc. ("LG"); Samsung Electronics Co., Ltd.; Samsung Semiconductor, Inc.; Samsung Electronics America, Inc. ("Samsung"); Sharp Corp.; Sharp Electronics Corp. ("Sharp"); and Toshiba Corporation; Toshiba America Electronic Components, Inc.; Toshiba Mobile Display Company, Ltd; Toshiba America Information Systems, Inc. ("Toshiba"). 6. What do the Settlements THE SETTLEMENTS' BENEFITS There are nine Settlements, totaling $21,505,000, being presented to the Court for approval. The Settlement Fund will be used to pay the State of Oregon, its political subdivisions and natural persons. More details about the anticipated distribution of the Settlement Fund are available in the Settlement Agreements and other documents available at www,-'com' Any interest earned will be added to the Settlement Fund. The cost to administer the Settlements as well as Court-authorized attorneys'fees and associated costs will come out of the Settlement Fund see 7. How much can I Payments to the State of Oregon and political subdivisions will be calculated based on the number of full time employees of the entity during the relevant time period. The State of Oregon and political subdivisions do not need to submit a claim. Payments to Oregon natural persons will be based on the number and type of Flat Panel product(s) you purchased and are anticipated to be up to $_ per device purchased, The purchase must have been made in Oregon and the purchaser must have been a resident of Oregon at the time of purchase. It is anticipated that a minimum payment of $- will be made to each person who submits a valid claim. In order to receive a payment you will need to file a valid claim form. The claim from must be completed online or po stmarked on or before Month ) CALL'IOLL FREE I I OR VISIT PARA UNA NO' IFICACION EN ESPANOL, LLAMAR O VISITAR NUESTRO WEBSITE 4 Page 4 of 7

10 Case 3:10-cv SI Document Filed 09/25/15 Page 5 of You can submit a claim form online at or receive a paper claim for to complete and submit by mail by calling l When will I a Payments are anticipated to be made in2016. Funds will be distributed as ordered by the Court. 9 What is the relief? Defendants have agreed not to engage in certain conduct that would violate the antitrust laws that arc at issue in these lawsuits. They also agree to establish (or maintain) a program to educate their employees about complying with the law, and report on their compliance with this requirement for a period of five years. REMAINING IN THE ATTORNEY GENERAL'S ACTION 10. What am I ifr in the lawsuits? You will give up any right you may have to sue any of the Defendants (and certain related entities defined in the Settlement Agreements) on your own for the claims in this case unless you exclude yourself from the Attorney General's Action. You also will be bound by any decisions of the Court relating to the lawsuit and Settlements. In return for paying the Settlement amounts, the Settling Defendants (and certain related entities defined in the Settlement Agreements) will be released from all claims relating to the facts underlying these lawsuits, as more fully described in the Settlement Agreements. The Settlement Agreements describe the released claims in detail, so read them carefully since those descriptions are binding to you. If you have any questions, you can , visit or you can, of course, talk to your owït lawyer if you have questions about what this means. The Settlement Agreements and the specifîc releases ate available at www'-.com. EXCLUDING YOURSELF FROM THE ATTORNEY GENERAL'S ACTION l1.howdoi out of the General's Action? Oregon political subdivisions and Oregon natural persons have the right to exclude themselves from this action. The State of Oregon cannot be excluded. You may wish to confer with your own attorney to determine if you have the right to sue individually. Please note that under Oregon law, authority to bring antitrust actions for indirect purchaser claims, like this action, was limited to actions by the Attorney General until January 1,2010' To be excluded from the Attorney General's action, you must send a written letter stating that you want to be excluded from the Oregon Attorney General's action in this case, State of Oregon,exrelEllenF.Rosenblumv.AUOptronicsCorp,etal.,caseno.CVl0-933MO. The letter must include your name, address, telephone number, and signature. A letter on behalf of a political subdivision person authorized to must include the entity's name, and the name, title, and signature of the sisn on behalf of the entity. The letter must be postmarked on or before CALL TOLL FREE l OR VISIT PARA UNA NO'IIFICACION EN ESPANOI-, LLAMAR O VISITAR NUESTRO WEBSITE Page 5 of 7

11 Case 3:10-cv SI Document Filed 09/25/15 Page 6 of 7 fdate], and mailed to: Oregon LCD Settlement c/o GCG P.O. Box Dublin, OH If I don't exclude m can I sue for the same later? No. Unless you exclude yourself, you give up any right you may have to sue the Defendants (and certain related entities defined in the Settlement Agreements) for the claims in this case. 13. If I exclude can I still benefits from the Settlements? No. If you exclude yourself, you will not get any benefit as a result of the Settlements in this matter 14. Do I have a me? THE LAWYERS REPRESENTING YOU The Attorney General of Oregon is representing the State of Oregon, Oregon political subdivisions, and Oregon natural persons. You do not have to pay the Attorney General separately. The Attorney General will be paid by asking the Courl for a share of the Settlement proceeds. If you want to be represented by your own lawyer, and have that lawyer appear in court for you, you must exclude yourself from the Action and hire an attorney at your own expense. 15. How will the be 2 The Attorney General has asked the Court for attorneys' fees based on the work of her office on this litigation, in an amount not to exceed 20o/o of the Settlement Fund, plus reimbursement of their costs and expenses. Any payment to the Attorney General will be subject to Court approval and the Court may award less than the requested amount. The fees, costs, expenses and awards that the Court orders, plus the costs to administer the Settlement, will come out of the Settlement Fund. The Attorney General's motion for fees, costs and expenses, will be available at Will there be atrial? TRIAL If the Settlements receive final approval from the Court, no trial will occur, Each Defendant has the option of terminating its settlement if the number of Oregon natural persons and political subdivisions excluding themselves is greater than certain previously agreed upon amounts, If any Defendant terminates its settlement, the Attorney General will have to prove her claims against that Defendant. CALL TOLL FREE l OR VISIT PARA UNA NOTIFICACION EN ESPANOL, LLAMAR O VISITAR NUESTRO WEBSITE () Page 6 of 7

12 Case 3:10-cv SI Document Filed 09/25/15 Page 7 of 7 During any such l.l,ial, a decision would be reached about whether the Attorney General or the Defendant is right about the claims in the lawsuits. In a trial, there is no guarantee that the Attomey General will win any money or benefits for consumers. If there is a trial and the Attorney General wins at trial, it is possible but not guaranteed that additional money or benefits would be available for natural persons or political subdivisions. V/hether you receive any additional money or benefits after atrial may depend on whether you have already been paid the maximum amount for your claim and in any event is subject to the Court's approval. Importantinformationaboutthecasewillbepostedonthewebsite,\ryww.-.com,asit becomes available. GET MORE INFORMATION This Notice summarizes the lawsuits and the Settlements. You can get more information about the lawsuits and Settlements at by calling l , or writing to Oregon LCD Settlement, c/o GCG, P.O. Box 10240, Dublin, OH CALL TOLL FREE t OR VISIT PARA IJNA NOTIFICACION EN ESPANOL, LLAMAR O VISITAR NUESTRO WEBSITE 7 Page 7 of 7