Major Telescope Makers Hit by Class Action Lawsuit for Alleged Price Manipulation

A $32 million class action settlement has been approved by the U.S. District Court in San Jose following allegations of market manipulation by leading telescope manufacturers. The settlement affects customers who purchased telescopes in the U.S. between 2005 and 2023, covering brands like Celestron, Meade, Olivon, and Sky-Watcher. Claims can be filed until May 20, 2025, by eligible buyers, as per reports detailing the outcome of the legal proceedings.

According to the Class Action Complaint

Documents from the Telescopes Antitrust Litigation highlight accusations against Synta Technologies and Ningbo Sunny, companies controlled by Chinese family-owned entities. As per space.com, allegations include conspiring to monopolise the U.S. amateur telescope market, fix prices, and eliminate competition. The complaint notes that former competitors struggled to survive, with some shutting down due to an inability to achieve sustainable sales and margins.

Impact on the Telescope Market

The lawsuit was initiated in 2016 by Orion Technologies, a California-based telescope maker, which accused the firms of violating U.S. antitrust laws. Despite winning the case in 2019 and receiving a $50.4 million settlement from Ningbo Sunny, Orion ceased operations in 2024. Meade, acquired by Orion in 2021, also failed to survive, while Olivon's website has gone offline.

Federal Oversight and Market Division

Reports indicate that Synta Technologies acquired Celestron in 2005 and aided Ningbo Sunny in acquiring Meade in 2013, circumventing Federal Trade Commission restrictions. It is stated that the firms agreed to divide the market, with Synta focusing on high-end products through Celestron, while Ningbo Sunny targeted budget-friendly options via Meade. This alleged collusion reportedly led to inflated prices, costing U.S. consumers hundreds of millions of dollars over two decades.

Next Steps for Consumers

While the settlement does not determine legal violations, earlier judgments against the firms under the Sherman and Clayton Acts were documented. A final approval hearing for the class action settlement is scheduled for April 2025, after which affected customers can access compensation.