UK Court Orders Higher Damages for LG Display in LCD Price-Fixing Case

Key Facts

1The UK Court of Appeal overturned the previous damage calculation methodology in an LCD price-fixing case, which is expected to increase the compensation amount for LG Display.

2The court found legal errors in the lower court's handling of overcharge and pass-through rates, stating that under-compensation due to uncertainty was an error of law.

3The case pertains to a global liquid crystal display (LCD) cartel that was active between 2001 and 2006.

The UK Court of Appeal has ordered a recalculation of damages in a long-standing LCD price-fixing case, a move expected to significantly increase the payout for LG Display. The appellate court overturned the previous methodology used by a lower court, identifying legal errors in how overcharge and pass-through rates were handled. Judges ruled that under-compensating the company due to calculation uncertainties constituted an error of law that must be rectified. The litigation stems from a global liquid crystal display (LCD) cartel that operated between 2001 and 2006. This ruling represents a positive financial development for LG Display, as it anticipates higher-than-expected cash inflows from legal settlements. The decision is likely to impact the company's valuation on both the South Korean (034220.KS) and New York (LPL) stock exchanges.