Sep. 13, 2012
Peter K. Huston
See more on Peter K. HustonU.S. Department of Justice, Antitrust Division San Francisco Government Specialty: antitrust
In March, a federal jury in San Francisco convicted AU Optronics Corp., the largest Taiwan-based liquid crystal display producer, its Houston-based subsidiary and two former top executives for their participation in a five-year conspiracy to fix the prices of thin-film-transistor liquid crystal display panels used in computers and televisions.
The jury also found that the ill-gotten gains generated as a result of the fixed sales in the United States were at least $500 million. U.S. v. Lin et al., 09-CR-110 (N.D. Cal., filed Feb. 4, 2009).
Sentencing is set for Friday, when the defendants will face a maximum fine of $1 billion and up to 10 years in prison.
"We want to make sure that the defendants are truly brought to justice and that the fines and jail terms imposed serve as an adequate deterrent for others contemplating this kind of conduct," said Huston, who served as lead counsel for the government throughout the eight-week trial.
Having this type of case go to trial is unusual, he said.
"When corporations and individuals are faced with the sort of evidence we had in this matter, quite typically they will see the light and agree to plead guilty," he said. "A lot will not want to take the risk."
Initially, the prosecution wanted to try the case in two phases, but the court denied its motion to do so.
"It turned out to be a blessing," Huston said, "because the same jury heard evidence of the conspiracy and also heard evidence that we put forward regarding the harm that was caused by the conspiracy."
The jury paid close attention to the often arcane issues involved in the case, Huston said.
"Any time you have one of these long, complex jury trials, there always is a little bit of a white-knuckle ride to it," he said. "You're not sure if a jury will follow the evidence or the story we are trying to tell. I'm always amazed that the jury is able to do it."
As for the message being sent by the verdict, Huston said, "I think the case is likely to have impact just by virtue of the fact that this company decided to go to trial, rolled the dice and lost."
He added, "I think it will have an affect on companies that might have skeletons in their closet, and I think they'll be a little more wary of going to court, rather than pleading guilty and moving on."
- PAT BRODERICK
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