AU Optronics CEO barred from leaving U.S.

SAN JOSE, USA: The CEO of the world's fourth-largest maker of liquid crystal displays has been barred from leaving the United States as Justice Department officials pursue price-fixing allegations against the company, a federal judge has ruled.

U.S. prosecutors indicted Lai-Juh Chen, chief executive officer of Taiwan's AU Optronics Corp, in June for fixing prices of thin-film LCD panels, which go into everything from TVs to smartphones.

After Chen pleaded not guilty in San Francisco last month, his lawyers argued that as the case proceeds, he should be allowed to travel between the United States and Asia to perform his duties. They said in a court filing Chen could be replaced if he were unable to fulfill his key job functions.

But U.S. District Judge Susan Illston ordered Chen and AU's vice chairman, Hsuan Bin Chen, to surrender their passports this week, court records indicate.

"Defendants shall not travel outside the Northern District of California" without the court's permission, Illston wrote.

The company said in July it saw no material impact on company operations from the U.S. Justice Department indictment, and, denying the charges, pointed out that prices for thin-film LCD panels had fallen steeply in past years.

A U.S. lawyer for AU Optronics, a major supplier to the likes of Dell, Hewlett-Packard and Sony Corp, declined comment on Friday. AU Optronics representatives were not immediately available for comment.

Attorneys for Chen have argued he is a man of integrity who enjoys an "excellent reputation" in the Taiwan business community. He is not a flight risk, they said.

Hsuan Bin Chen's attorneys have said he would not become a fugitive because his daughters live in the United States, and put up their own property to ensure his court appearances.

AU Optronics shares fell 3 cents to $8.99 on the New York Stock Exchange.