UPDATE: Three Hitachi-LG Data-Storage Executives To Plead Guilty To Price Fixing
December 13 2011 - 5:05PM
Dow Jones News
Three Korean executives from Hitachi-LG Data Storage Inc. have
agreed to plead guilty to rigging bids and fixing prices on optical
disk drives used in computers and other electronic devices, the
Justice Department announced Tuesday.
The executives will serve prison time in the U.S., the
department said. The charges were filed in a San Francisco federal
court.
Earlier this year, the company, a joint venture between Hitachi
Ltd. (HIT, 6501.TO) and LG Electronics Inc. (066570.SE), pleaded
guilty to related charges and was sentenced to pay a $21 million
criminal fine.
Prosecutors said the company and unnamed co-conspirators rigged
the bidding process on drives they sold to Dell Inc. (DELL),
Microsoft Corp. (MSFT) and Hewlett-Packard Co. (HPQ).
Optical disk drives are used in everyday consumer products such
as personal computers, DVD and Blu-ray disk players, and videogame
consoles.
The executives charged Tuesday were Young Keun Park, Sang Hun
Kim and Sik Hur.
Prosecutors said the executives participated in bid-rigging and
price-fixing conspiracies at various times between 2005 and
2009.
Lawyers for the executives could not immediately be identified.
A spokesman for Hitachi America did not immediately respond to a
request for comment.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com
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