MANHASSET, N.Y. The United States District Court has dismissed an antitrust suit by AVX Corp. against Cabot Corp., settling the most recent dispute between a passive component supplier and the Boston-based tantalum powder supplier.
AVX (Myrtle Beach, S.C.) filed suit against Cabot in August 2002, alleging the company violated antitrust laws by tying the purchase of one type of tantalum product by AVX to the purchase of other types.
The Court, however, ruled that Cabot did not engage in unfair and deceptive trade practices or commit breach of contract as alleged by AVX. Throughout the litigation, AVX continued to purchase tantalum powder in accordance with the terms of its supply agreement.
Cabot, which supplies roughly half the industry's tantalum powder, had in April 2002 filed suit against Kemet Corp. and Vishay Intertechnology Inc.
, as both passive suppliers tried to postpone or refuse powder shipments because of excess capacitor inventories.
Vishay settled its dispute with Cabot in June 2002, while Kemet settled with Cabot in December 2002. Both companies were forced to take huge balance sheet write-offs for excess tantalum.