Micron, Samsung and SK Hynix Face Antitrust Lawsuit: What Investors Should Know

The three companies that produce nearly all of the world’s DRAM chips are once again facing antitrust allegations. A class action filed June 25 in the U.S. District Court for the Northern District of California accuses Micron Technology Inc. (NASDAQ: MU ), Samsung Electronics Co., Ltd. (OTC: SSNLF ) and SK hynix Inc. of unlawfully coordinating production to restrict DRAM supply and drive prices higher. Together, the three companies account for roughly 90% of global DRAM production. The complaint, “Garciaguirre v. Samsung Electronics,” alleges violations of Section 1 of the Sherman Act. According to the lawsuit, commodity DRAM prices have surged roughly 700% over the past four years. Plaintiffs seek class-action status, an injunction against the alleged conduct and treble damages. What It Means DRAM is the working memory inside almost every computer, phone, tablet and...