Friday, February 14, 2014

BRIDGESTONE CROOKS PAY MILLIONS FOR PRICE FIXING

CORPORATE CRIME REPORTER


Bridgestone to Plead Guilty to Price Fixing, Pay a $425 Million Fine

Bridgestone Corp., a Tokyo, Japan-based company, will plead guilty and to pay a $425 million criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts installed in cars sold in the United States and elsewhere.
Federal officials alleged that Bridgestone engaged in a conspiracy to allocate sales of, to rig bids for and to fix, raise and maintain the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd., Suzuki Motor Corp., Isuzu Motors Ltd. and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.
In addition to the criminal fine, Bridgestone also has agreed to cooperate with the department’s ongoing auto parts investigations.  The plea agreement is subject to court approval.
In October 2011, Bridgestone pled guilty and paid a $28 million fine for price-fixing and Foreign Corrupt Practices Act (FCPA) violations in the marine hose industry, but did not disclose at the time of the plea that it had also participated in the anti-vibration rubber parts conspiracy.  Bridgestone’s failure to disclose this conspiracy was a factor in determining the $425 million fine.
“The Antitrust Division will take a hard line when repeat offenders fail to disclose additional anticompetitive behavior,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “Today’s significant fine reaffirms the division’s commitment to holding companies accountable for conduct that harms U.S. consumers.”
Federal officials alleged that Bridgestone and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids, prices and allocating sales of certain automotive anti-vibration rubber products.
After exchanging this information with its co-conspirators, Bridgestone submitted bids and prices in accordance with those agreements and sold and accepted payments for automotive anti-vibration rubber parts at collusive and noncompetitive prices.
Bridgestone’s involvement in the conspiracy to fix prices of anti-vibration rubber parts lasted from at least January 2001 until at least December 2008.
Bridgestone manufactures and sells a variety of  automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile.
They are installed in automobiles for the purpose of reducing road and engine vibration.
Including Bridgestone, 26 companies have pled guilty or agreed to plead guilty in the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry.  The companies have agreed to pay a total of more than $2 billion in criminal fines.  Additionally, 28 individuals have been charged.