HomeMy WebLinkAboutMINUTES - 04222014 - C.19RECOMMENDATION(S):
APPROVE and AUTHORIZE the County’s participation in the settlement of In re Dynamic Random Access Memory
(DRAM) Antitrust Litigation , Northern District of California Case No. M-02-1476-PJH.
FISCAL IMPACT:
The County will receive a direct payment of settlement funds of approximately $29,536, and will be eligible to apply
for a technology grant from settlement funds.
BACKGROUND:
The County is a member of the plaintiff class in a class action lawsuit entitled In re Dynamic Random Access
Memory (DRAM) Antitrust Litigation, Northern District of California Case No. M-02-1476-PJH. The lawsuit alleges
that 23 manufacturers of dynamic random access memory (DRAM) and products containing DRAM, e.g., personal
computers, servers, memory modules, printers, video game consoles, DVD players) engaged in price-fixing and other
unlawful acts. The lawsuit was filed by the Attorneys General of California and other states, and other public entities,
on behalf of themselves and other public entities, persons, and businesses that were allegedly affected by the
defendants’ DRAM price-fixing.
On January 17, 2014, the District Court granted preliminary approval of a proposed settlement of the lawsuit. The
proposed settlement will result in an injunction against the defendants, to prevent them from engaging in specified
unlawful activities, including price fixing. The proposed settlement also will require the defendants
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 04/22/2014 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Ed Woo,
925-383-2688
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: April 22, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stacey M. Boyd, Deputy
cc:
C. 19
To:Board of Supervisors
From:Ed Woo, Chief Information Officer
Date:April 22, 2014
Contra
Costa
County
Subject:Approval of settlement of In re Dynamic Random Access Memory (DRAM) Antitrust Litigation, Northern District of
California Case No. M-02-1476-PJH.
BACKGROUND: (CONT'D)
to maintain antitrust compliance programs. Finally, the proposed settlement will require the defendants to pay over
$310 million into a settlement fund. One-ninth of the settlement fund will be allocated to affected public entities.
(The remaining eight-ninths will be allocated to affected businesses and individuals.) Over $1,800,000 will be
allocated for affected political subdivisions of the State of California. Some of those funds will be paid directly to
affected political subdivisions like Contra Costa County. The remaining funds will be made available by the
Attorneys General as technology grants to affected public entities.
According to the state Attorney General’s Office, if the County participates in the settlement and the settlement is
approved by the Court, the County will receive a direct payment of settlement funds of approximately $29,536. The
County also would be eligible to apply for a technology grant from settlement funds.
The District Court will determine whether to approve the proposed settlement at a hearing on June 25, 2014. At that
hearing, the District Court will confirm the members of the plaintiff class that will participate in and be bound by the
proposed settlement. According to the settlement notice, the County does not need to take any action to participate in
the settlement and receive a payment of settlement funds. However, by taking no action, the County would be
agreeing to the terms of the settlement agreements, and to be represented by the California Attorney General in the
settlement. Under the terms of the settlement agreements, the County would release the defendants from any and all
of County’s claims, known and unknown, arising out of or relating to the defendants’ pricing, production,
development, and sale of DRAM or products containing DRAM through December 31, 2002. (The settlement
agreements are available at www.DRAMclaims.com (last visited Mar. 4, 2014). The settlement would not prevent the
County from bringing product liability or warranty claims related to DRAM or products containing DRAM.)
The County may choose to opt out of the settlement, to avoid being bound by the terms of the settlement agreements.
(An opt-out notice would need to be sent to the Court on or before May 5, 2015.) However, if the County opts out of
the settlement, it will not receive any direct payments of settlement funds and would not be able to apply for a
technology grant from settlement funds. Opting out would preserve the County’s right to bring a separate lawsuit
against the defendants. But such a lawsuit could cost more than the County may be able to recover, or could result in
no recovery at all.
For these reasons, Department of Information Technology staff recommends participating in the settlement of this
lawsuit.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board of Supervisors does not approve participating in the settlement of this lawsuit, the County would not
receive any settlement funds and would not be eligible to apply for a technology grant from settlement funds. The
County also would not be bound by the settlement agreements entered into by and among the parties to this class
action lawsuit.
CHILDREN'S IMPACT STATEMENT:
N/A