Top telescope manufacturers face class action lawsuit over price manipulation charges.

A settlement of $32 million for a class action lawsuit has been approved by the U.S. District Court in San Jose, addressing claims of market manipulation by major telescope manufacturers. This settlement applies to customers who purchased telescopes in the United States between 2005 and 2023, involving popular brands such as Celestron, Meade, Olivon, and Sky-Watcher. Those eligible to file claims have until May 20, 2025, to do so, based on reports detailing the outcome of the legal proceedings.

The Class Action Complaint documents from the Telescopes Antitrust Litigation reveal severe accusations against Synta Technologies and Ningbo Sunny, companies controlled by Chinese family-owned entities. According to space.com, these allegations revolve around the companies colluding to dominate the U.S. amateur telescope market, maintain fixed prices, and eliminate competition. This harmful conduct led to the demise of former competitors who struggled to stay afloat, eventually leading some to close down due to the challenges of achieving sustainable sales and margins.

The impact of the lawsuit on the telescope market has been significant. It all began in 2016 when Orion Technologies, a California-based telescope manufacturer, initiated legal action accusing these firms of violating U.S. antitrust laws. Despite winning the case in 2019 and receiving a settlement of $50.4 million from Ningbo Sunny, Orion ultimately ceased operations in 2024. Additionally, Meade, which was acquired by Orion in 2021, also failed to survive, and Olivon’s website has even gone offline.

Reports indicate that Synta Technologies acquired Celestron in 2005 and assisted Ningbo Sunny in acquiring Meade in 2013, bypassing Federal Trade Commission restrictions. These companies allegedly colluded to divide the market, with Synta focusing on high-end products through Celestron, while Ningbo Sunny targeted budget-friendly options through Meade. This collusion resulted in inflated prices, causing U.S. consumers to incur hundreds of millions of dollars in losses over a span of two decades.

While the settlement itself does not establish legal violations, previous judgments against these firms under the Sherman and Clayton Acts have been documented. A final approval hearing for the class action settlement is set for April 2025, following which affected customers will be able to access compensation.