THE compressor manufacturers facing allegations of price fixing in Europe, Brazil and the USA face potentially massive fines and costs if found guilty.
In the highly litigious US, more than 30 private companies have already lodged class action complaints.

The actions have been lodged in courts across America naming as defendants Tecumseh Products Company, Tecumseh Compressor Company, Tecumseh Do Brasil, Tecumseh Do Brasil USA, Danfoss A/S, Danfoss Commercial Compressors Ltd, Danfoss Scroll Technologies LLC, Danfoss Turbocor Compressors Inc, Danfoss Compressor LLC, Whirlpool Corporation, Whirlpool SA, Embraco North America Inc, Pansaonic Corporation, Pansaonic Corporation of North America, Appliance Components Companies pA and ACC USA LLC.

As well as naming Panasonic and ACC as defendants further details have come to light following the raids on company offices across Europe, the USA and Brazil in February.

Significantly, the activities of the alleged cartel were revealed to the authorities by Tecumseh who requested and received conditional amnesty under the US Department of Justice¹s Corporate Leniency Policy. The company has also entered into similar amnesty agreements in Europe and Brazil.

Tecumseh is said to have admitted its complicity in the alleged conspiracy and has provided information to the authorities confirming the identities, roles and activities of its co-conspirators.

The US Justice Department has issued grand jury subpoenas to Tecumseh and Whirlpool and is it said to be investigating several of the US-based Danfoss defendants as well as Panasonic in North America.

The US plaintiffs claim that as a result of the conspiracy, prices for hermetic compressor products were significantly higher than they would otherwise have been.

One US lawyer involved told ACR News that the potential damages were 'enormous'. According to information released by Brazilian anti-trust regulators, the alleged conspiracy operated for at least 12 years and speculation in the Brazilian press puts the potential losses in 2008 alone at $425m.