IN RE CAPACITORS ANTITRUST LITIGATION

AMENDED COMPLAINT Consolidated Second Amended Class Action Complaint and Complaint of Flextronics International USA, Inc. against AVX Corporation, American Shizuki Corporation, Elna America Inc., Elna Co. Ltd., Fujitsu Ltd., Hitachi AIC Incorporated, Hitachi Chemical Co., Ltd., Hitachi Chemical Company America, Ltd., Holy Stone Enterprise Co., Ltd., KEMET Corporation, KEMET Electronics Corporation, Matsuo Electric Co, Ltd., Milestone Global Technology, Inc., NEC Tokin America, Inc., NEC Tokin Corporation, Nichicon (America) Corporation, Nichicon Corporation, Nippon Chemi-con Corporation, Nissei Electronic Co. LTD., Nitsuko Electronics Corporation, Okaya Electric America Inc., Okaya Electric Industries Co., Ltd., PANASONIC CORPORATION OF NORTH AMERICA, Panasonic Corporation, Rohm Co., Ltd., Rohm Semiconductor U.S.A., LLC, Rubycon America Inc., Rubycon Corporation, SANYO Electric Co., Ltd., Sanyo North America Corporation, Shinyei Capacitor Co., Ltd., Shinyei Corporation of America, Inc., Shinyei Kaisha, Shizuki Electric Co., Ltd, Soshin Electric Co., Ltd., Soshin Electronics of America Inc., Taitsu America, Inc., Taitsu Corporation, Toshin Kogyo Co., Ltd., United Chemi-con Corporation, Vishay Polytech Co., Ltd., Shinyei Technology Co., Ltd. Filed by Direct Purchaser Plaintiffs.

Northern District of California, cand-3:2014-cv-03264

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Case 3:14-cv-03264-JD Document 1355 Filed 10/24/16 Page 1 of 113 1 Joseph R. Saveri (State Bar No. 130064) Andrew M. Purdy (State Bar No. 261912) 2 JOSEPH SAVERI LAW FIRM, INC. 505 Montgomery Street, Suite 625 3 San Francisco, California 94111 Telephone: (415) 500-6800 4 Facsimile: (415) 395-9940 Email: jsaveri@saverilawfirm.com 5 apurdy@saverilawfirm.com mweiler@saverilawfirm.com 6 jdallal@saverilawfirm.com rmcewan@saverilawfirm.com 7 Interim Direct Purchaser Class Counsel and 8 Attorneys for Plaintiffs Chip-Tech, Ltd., Dependable Component Supply Corp., eIQ Energy Inc. and 9 Walker Component Group, Inc. 10 [Additional Counsel Listed on Signature Page] 11 UNITED STATES DISTRI CT COURT 12 NORTHERN DISTRICT OF CALIFORNIA 13 Master File No. 3:14-cv-03264-JD 14 IN RE CAPACITORS ANTITRUST CONSOLIDATED SECOND AMENDED LITIGATION CLASS ACTION COMPLAINT and 15 COMPLAINT OF FLEXTRONICS INTERNATIONAL USA, INC. 16 17 THIS DOCUMENT RELATES TO: JURY TRIAL DEMANDED 18 DIRECT PURCHASER CLASS ACTION; FLEXTRONICS INTERNATIONAL USA, 19 INC.’S INDIVIDUAL ACTION 20 21 22 23 24 25 26 27 28 30 Master File No. 3:14-cv-03264-JD 31 SECOND AMENDED CONSOLIDATED CLASS ACTION COMPLAINT AND COMPLAINT OF FLEXTRONICS INTERNATIONAL USA, INC. Case 3:14-cv-03264-JD Document 1355 Filed 10/24/16 Page 2 of 113 1 I. NATURE OF THE ACTION........................................................................................................5 2 II. JURISDICTION AND VENUE.................................................................................................... 9 3 III. PARTIES....................................................................................................................................... 10 4 A. Plaintiffs.................................................................................................................... 10 5 B. Flextronics International U.S.A., Inc........................................................................ 10 6 C. Defendants................................................................................................................ 11 7 1. Panasonic/SANYO................................................................................................... 11 8 2. NEC TOKIN............................................................................................................ 12 9 3. KEMET.................................................................................................................... 13 10 4. Nippon Chemi-Con.................................................................................................. 14 11 5. Hitachi....................................................................................................................... 14 12 6. Fujitsu....................................................................................................................... 15 13 7. Nichicon.................................................................................................................... 16 14 8. AVX.......................................................................................................................... 17 15 9. Rubycon.................................................................................................................... 17 16 10. ELNA........................................................................................................................ 18 17 11. Matsuo...................................................................................................................... 18 18 12. TOSHIN KOGYO.................................................................................................... 19 19 13. Holy Stone................................................................................................................ 19 20 14. Vishay Polytech........................................................................................................ 20 21 15. ROHM...................................................................................................................... 21 22 16. Okaya......................................................................................................................... 21 23 17. Taitsu....................................................................................................................... 22 24 18. Shinyei...................................................................................................................... 22 25 19. Nitsuko......................................................................................................................23 26 20. Nissei.........................................................................................................................23 27 21. Soshin........................................................................................................................23 28 22. Shizuki...................................................................................................................... 24 30 31 SECOND AMENDED CONSOLIDATED CLASS ACTION COMPLAINT AND COMPLAINT OF FLEXTRONICS INTERNATIONAL USA, INC. Case 3:14-cv-03264-JD Document 1355 Filed 10/24/16 Page 3 of 113 1 23. The Flextronics Defendants..................................................................................... 24 2 IV. CLASS ALLEGATIONS............................................................................................................. 26 3 V. TRADE AND COMMERCE....................................................................................................... 28 4 VI. FACTUAL ALLEGATIONS...................................................................................................... 30 5 A. What Capacitors Do and How They Work.............................................................. 30 6 B. Types of Capacitors and Their Uses......................................................................... 31 7 1. Electrolytic Capacitors..............................................................................................32 8 a. Aluminum Capacitors................................................................................32 9 b. Tantalum Capacitors.................................................................................. 33 10 2. Electrostatic Capacitors............................................................................................34 11 a. Film Capacitors..........................................................................................34 12 b. Ceramic Capacitors.................................................................................... 35 13 C. The Market Conditions in Which Defendants’ Conspiracy Originated and Operated.................................................................................................................... 37 14 D. Defendants’ Collusive Anticompetitive Practices....................................................39 15 E. Defendants’ Cartel.................................................................................................... 41 16 F. Meetings Among the Defendant Cartel Members During the Class Period............43 17 1. The Cartel’s Regular Meetings.................................................................................43 18 2. Specific Cartel Meetings...........................................................................................47 19 3. Other Meetings and Conspiratorial Communications Among Defendants..............56 20 a. SANYO’s Meetings and Communications With Other 21 Defendants................................................................................................. 57 22 b. AVX’s Meetings and Communications With Other Defendants.............. 57 23 c. KEMET’s Meetings and Dealings With Defendant Cartel Members....................................................................................................59 24 d. FMD’s Meetings and Dealings With Cartel Members............................. 64 25 G. Defendants’ U.S.-Based Subsidiaries Marketed, Sold and Delivered Their 26 Defendant Corporate Parents’ Price-Fixed Capacitors in Furtherance of the Capacitors Cartel’s Aims and Purposes............................................................. 64 27 1. UCC Advanced the Cartel’s Aims and Purposes in the United States for 28 Nippon Chemi-Con...............................................................................................65 30 2 31 SECOND AMENDED CONSOLIDATED CLASS ACTION COMPLAINT AND COMPLAINT OF FLEXTRONICS INTERNATIONAL USA, INC. Case 3:14-cv-03264-JD Document 1355 Filed 10/24/16 Page 4 of 113 1 2. Nichicon America advanced the Cartel’s Aims and Purposes in the United States for Nichicon................................................................................................ 68 2 3. ROHM USA advanced the Cartel’s Aims and Purposes in the United 3 States for ROHM.................................................................................................. 70 4 4. Okaya America advanced the Cartel’s Aims and Purposes for in the United States for Okaya.....................................................................................................72 5 5. Shinyei America advanced the Cartel’s Aims and Purposes in the United 6 States for Shinyei...................................................................................................74 7 6. Soshin America advanced the Cartel’s Aims and Purposes in the United States for Soshin Co...............................................................................................76 8 H. Anticompetitive Effects of Defendants’ Capacitors Cartel......................................78 9 VII. INDUSTRY CHARACTERISTICS INDICATING AND FACILITATING 10 DEFENDANTS’ CONSPIRACY................................................................................................79 11 A. Market Concentration...............................................................................................79 12 B. High Barriers to Entry............................................................................................... 81 13 C. Mutual Interchangeability of Defendants’ Capacitors............................................. 84 14 D. Inelastic Demand..................................................................................................... 84 15 E. Commoditization......................................................................................................85 16 F. Weak Demand.......................................................................................................... 86 17 G. Excess Manufacturing Capacity............................................................................... 86 18 H. Large Number of Purchasers With Limited Purchasing Power................................87 19 I. Ease of Information Sharing Among Defendants.....................................................87 20 VIII. CURRENT U.S. AND INTERNATIONAL ANTITRUST INVESTIGATIONS INTO ANTICOMPETITIVE PRACTICES IN THE CAPACITORS INDUSTRY............................ 90 21 IX. FRAUDULENT CONCEALMENT............................................................................................93 22 X. ADDITIONAL ALLEGATIONS SPECIFIC TO FLEXTRONICS............................................96 23 XI. EFFECTS OF DEFENDANTS’ CONSPIRACY ON U.S. SALES OF ALUMINUM, 24 TANTALUM AND FILM CAPACITORS AND INJURY TO THE DIRECT PURCHASER CLASS AND FLEXTRONICS............................................................................99 25 XII. CLAIMS FOR RELIEF...............................................................................................................100 26 XIII. DEMAND FOR JUDGMENT................................................................................................... 105 27 28 30 3 31 SECOND AMENDED CONSOLIDATED CLASS ACTION COMPLAINT AND COMPLAINT OF FLEXTRONICS INTERNATIONAL USA, INC. Case 3:14-cv-03264-JD Document 1355 Fi