After an eight-week trial, the DOJ's Antitrust Division secured a jury verdict convicting Taiwanese LCD manufacturer AU Optronics Corporation (AUO), its US subsidiary and two former top executives for fixing the prices of LCD panels. The jury determined that the combined gains of the entire LCD cartel totaled at least $500 million.

Under the Sherman Act, a price-fixing violation could result in fines up to $1 million for individuals and up to $100 million for corporations. However, the Federal Sentencing Guidelines allow for fine increases up to either twice the gain from the illegal conduct or twice the loss to the victims. Therefore, because the DOJ proved beyond a reasonable doubt that the overcharges resulting from the LCD cartel were at least $500 million, the AUO defendants face a potential $1 billion fine in addition to prison time for the convicted executives. The case also confirmed that the appropriate measure of harm under the Federal Sentencing Guidelines is the overcharge, or harm, caused by all the conspirators in the cartel and not just the harm caused by the defendants.

The AUO defendants will not be sentenced until later this year, and the company has stated its intention to appeal the verdict and any fine. However, the win will likely embolden the DOJ and allow it to take stronger positions when negotiating plea agreements with alleged cartel participants. Given the AUO outcome, targets of cartel investigations must consider the monetary effects of the cartel as a whole, and not just that caused by their own behavior, when calculating the risks of going to trial versus entering into a plea agreement with the DOJ.

For more information on this case, see the DOJ's press release.