WASHINGTON, Jan 8 (Reuters) – Data storage company Seagate (STX.O), opens new tab on Thursday persuaded a U.S. appeals court to revive key claims in a lawsuit accusing Japanese manufacturer NHK Spring of illegally fixing the prices of key technology parts.
The San Francisco-based 9th U.S. Circuit Court of Appeals gave Seagate, a leading manufacturer of hard disk drives, a new chance to argue it can sue under U.S. antitrust law for purchases that two of its foreign affiliates made from NHK outside of the United States.
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The decision, opens new tab reversed a district judge who had dismissed much of Seagate’s lawsuit on the basis that it concerned commercial activity in a foreign country.
U.S. antitrust laws generally do not apply to transactions abroad, but the appeals court said Seagate’s claims could be subject to an exception under the Foreign Trade Antitrust Improvements Act and ordered the case returned to the trial court.
“Simply put, Americans too were harmed by NHK’s price-fixing, even if foreign companies are the ones suing based on their injuries suffered abroad,” Circuit Judge Kenneth Lee wrote in the ruling, joined by Circuit Judge Consuelo Callahan and U.S. District Judge Scott Rash.
Seagate in a statement said it is “pleased by the court’s decision and looks forward to continuing to prosecute its merit-based claims in the district court.”
NHK Spring and a lawyer for the company did not immediately respond to requests for comment.
The company has denied any wrongdoing in Seagate’s lawsuit.
California-based Seagate in 2019 sued NHK over claims it was overcharged on hard-drive components called suspension assemblies that were purchased abroad by two of its foreign entities.
NHK earlier pleaded guilty in U.S. federal court to a price-fixing conspiracy claim over assemblies sold in the U.S. and other countries.
The appeals court, citing Seagate’s complaint, said NHK’s price-fixing in the United States led to higher prices for suspension assemblies here and that Seagate’s foreign entities overpaid for the parts based on the inflated U.S. price.
The case is Seagate Technology et al v. NHK Spring et al, 9th U.S. Circuit Court of Appeals, No. 24-4470.
For Seagate: Eamon Joyce of Sidley Austin
For NHK: Michael Murray of Paul Hastings
Reporting by Mike Scarcella
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