U.S. launches flash memory price fixing probe

on September 14 2007 7:29 PM

Flash memory makers, whose products are used in some some of the most popular consumer electronics devices - including cell phones, video cameras and digital music players - are are once again in the sights of U.S. federal prosecutors.

SanDisk (Nasdaq: SNDK) said in a filing today with the Securities and Exchange commission today that the company and its chief executive Eli Harari had been subpoenaed this week by U.S. justice officials in relation to possible antitrust violations in the NAND flash memory industry.

The two largest NAND makers, Samsung Electronics and Toshiba Corp. have also confirmed the action.

The U.S. Justice department had previously conducted a criminal antitrust probe against makers of another type of memory, DRAM. The U.S. gained several convictions and fined companies involved a total of $731 million.

Sandisk also said it had been notified by the Canadian Competition Bureau that it had begun a similar industry-wide probe.

Two weeks ago, SanDisk and 23 other companies were sued in Califonia federal court in a purported class action suit alleging price-fixing of flash memory.

Sandisk said it intends to cooperate in the investigations.

Shares of SanDisk rose $1.30, or 2.60 percent to reach $51.29 at the end of regular trading hours.

More News from IBT MEDIA