Checkpoint Systems Found Guilty in Antitrust Case

Published: May 26, 2002

A federal jury has found label, bar-code and retail security systems maker Checkpoint Systems guilty of antitrust violantions in the security-tag market and assessed damages of $26 million.

The lawsuit was brought by ID Security Systems Canada Inc., which alleged that Checkpoint interfered with ID Security’s contract to distribute anti-theft retail tags made by Tokai Electronics of Japan, according to an earlier release from ID Security.

The jury found New Jersey-based Checkpoint guilty of attempted monopolization and consipiracy to monopolize, in addition to related state law claims, the company said. The jury however cleared Checkpoint of the charge of monopolization, the company said.

“We are very surprised and disappointed by the results, and the company plans to appeal,” said Michael Smith, Checkpoint president and CEO in a company statement.

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According to the release, ID Security originally asked for $270 million. The assessed damages are subject to potential tripling by the court under a rule known as trebling. If the judge decides on that option, Checkpoint may be ordered to pay as much as $78 million before attorney’s fees.

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