Court denies motion to dismiss DRAM price fixing case

On November 14, U.S. District Judge Noël Wise denied Samsung, SK Hynix, and Micron's motion to dismiss a class action lawsuit accusing them of price fixing in the DRAM market. The court found the complaint plausible and alleged an agreement in violation of the Sherman Act. The companies argued the case was similar to DRAM II, but Judge Wise disagreed, citing several factors suggesting an agreement.

The suit, filed by 17 consumers and small businesses, alleges the three companies controlled over 91% of global DRAM revenue and restricted supply beginning in late 2022. The complaint also claims a 697% price increase over 18 months and a failure to expand conventional capacity despite high prices. Judge Wise rejected the companies' argument that timing gaps in supply cuts weakened their parallel action case.

She found parallel conduct in supply cuts, the shift to HBM, and the DDR4 exit, but set aside DDR3 allegations. The judge agreed that the HBM pivot alone was insufficient and that the companies' moves were not entirely self-interested. She also found that the companies' sudden and coordinated exit from DDR4, along with their denial of long-term agreements with major conventional DRAM customers, strongly support a plausible inference of conspiracy.