Story 2014-04-04 3HD DRAM Manufacturers Settle in Price Fixing Class Action Suit

DRAM Manufacturers Settle in Price Fixing Class Action Suit

in hardware on (#3HD)
Manufacturers of DRAM modules reached a $310 million settlement for working together to fix prices. If you bought DRAM between 1998 and 2002, including any electronic device or computer containing DRAM, you may be eligible for a rebate . The minimum rebate is $10, while larger purchasers can receive up to $1000. The class action suit applies to the U.S. only, and the deadline to submit a claim is August 1, 2014.
Reply 6 comments

Interesting (Score: 1)

by on 2014-04-04 13:56 (#ZB)

"No documentation is required to file a claim."
What is to stop people filing false claims?

Re: Interesting (Score: 2, Informative)

by on 2014-04-04 14:21 (#ZD)

It says on the site that further documentation may be required at a later time, after the claim has been filed.

Re: Interesting (Score: 1)

by on 2014-04-04 16:18 (#ZF)

Probably, a fleet of lawyers circling over the carcass, beating their wings in slow flaps. These guys are conflicted - it's in their interest to get as many "affected parties" as possible to strengthen the lawsuit. They sort out the details later, and after all in suits like this the poor, suffering bloke who was overcharged for DRAM might come home with a check for $3.65 while the lawyer fees will reach millions.

Revolution now!

Class action screwiness (Score: 4, Informative)

by on 2014-04-04 14:22 (#ZE)

Granted, most class action settlements make no sense, but this one boggles the mind. If you read the actual distribution of the settlement (pages 5-6):
Splitting a 200M pool of cash (nice windfall for the lawyers and govt at $110M). Individuals get $10+, BUT only if there is less than 2.5M claims (this would be -$25M out of the $200M pool). If there are more than 5M claims, no claims will be honored, instead $40M will go to court approved non-profits (-$40M out of a $200M pool).

What happens if there are more than 2.5M, but less than 5M claims?
More confusing: where does the other $160M-$175M go? The govt. and lawyers already took their cut off the top.

Re: Class action screwiness (Score: 2, Interesting)

by on 2014-04-04 17:38 (#ZG)

Probably the best part of the whole thing was this line from the PDF:
In addition, Defendants have agreed not to engage in the conduct, that is the subject of the lawsuits, and have also agreed to compliance training and cooperation.

Re: Class action screwiness (Score: 2, Funny)

by on 2014-04-04 23:36 (#ZN)

Heh, missed that part. Can you picture the CEOs of all the companies in a Business Ethics 101 class? And didn't their "cooperation" get them in this mess in the first place?