Edgeworth Client Prevails in Defense against Antitrust Counterclaims Against Automaker
Edgeworth Economics Partner Dr. George G. Korenko was retained by counsel for Hyundai Motor America, Inc., and Hyundai Motor Company (“Hyundai”) in an antitrust counterclaim brought against the company by Direct Technologies International, Inc. (“DTI”).
Hyundai sued DTI, accusing it of importing and selling Hyundai-branded “grey market” parts, which were non-genuine Hyundai Parts. DTI filed an antitrust counterclaim, alleging that Hyundai illegally restrained trade, attempted to acquire a monopoly, and engaged in exclusive dealing, unfair competition, and false advertising. DTI claimed that Hyundai harmed DTI and competitors by threatening not to honor its warranties if its cars were found to contain parts that were non-genuine Hyundai Parts. Dr. Korenko submitted an expert report explaining the economics of tying and exclusive dealing, antitrust market definition, and calculating antitrust damages. He showed that DTI’s allegations were not consistent with the economics of Hyundai’s warranty policies, and that DTI had not conducted the requisite analyses to support its claims.
In its order, the US District Court, Western District of North Carolina, Charlotte Division, ruled against DTI on its antitrust counterclaims. The Court stated that “DTI has acknowledged that its Counterclaims against Hyundai are and were without merit.”