Justia Antitrust & Trade Regulation Opinion Summaries

In the case before the United States Court of Appeals for the Fourth Circuit, the defendant, Brent Brewbaker, appealed from his conviction of a per se antitrust violation under § 1 of the Sherman Act, as well as five counts of mail and wire fraud. Brewbaker had asked the district court to dismiss the Sherman Act count for failure to state an offense, but the court denied his motion. The court of appeals reversed Brewbaker’s Sherman Act conviction, finding that the indictment failed to state a per se antitrust offense as it purported to do. The court, however, affirmed his fraud convictions and remanded the case for resentencing.The legal basis for the case was Brewbaker's argument that the indictment should have been dismissed because it did not state a per se Sherman Act offense, a claim that the appellate court agreed with. The court explained that the indictment alleged a restraint that was both horizontal and vertical in nature, which does not fit neatly into either category as per existing case law. The court further noted that the Supreme Court had not yet clarified how to analyze an agreement between two parties with both vertical and horizontal aspects. The court concluded that the indictment did not allege a restraint that has been previously held to be per se illegal, nor one that economics showed would invariably lead to anticompetitive effects, and thus failed to state a per se violation of the Sherman Act.The court also rejected Brewbaker's claim that the jury instructions on the Sherman Act count "infected" the jury’s consideration of the fraud counts, noting that the fraud counts were not dependent on finding Brewbaker guilty under the Sherman Act. It further cited the presumption that juries follow instructions, and found no extraordinary situation to overcome this presumption. Therefore, the fraud convictions were affirmed. View "US v. Brent Brewbaker" on Justia Law

The Supreme Court reversed the order of the district court concluding that the claims against Appellant did not fall within the categories of claims subject to Nevada's anti-SLAPP statutes without further analysis, holding that remand was required.In the underlying lawsuit, TMM, Inc. (TMMI) filed a third-party complaint against Appellant asserting claims for trade libel, misappropriation of trade secrets, conversion, injunctive relief, abuse of process, and alter ego liability. Appellant filed an anti-SLAPP special motion to dismiss, which the district court denied. The Supreme Court reversed and remanded the case for further proceedings, holding (1) the district court erred in finding that the subject claims did not fall within the categories of claims subject to the anti-SLAPP statute; (2) Appellant met his burden under the first prong of the anti-SLAPP analysis; and (3) the district court applied an incorrect standard in evaluating TMMI's claims under the second prong of the anti-SLAPP analysis. View "Panik v. TMM, Inc." on Justia Law

The Supreme Court dismissed this interlocutory appeal of a vacated class certification order and directed the circuit court to remand the case to address motions to compel arbitration, holding that this appeal was moot.Plaintiffs, who represented the estates of former residents of fourteen different nursing homes, alleged breach of contract and unjust enrichment claims against the nursing homes, in violation of the Arkansas Civil Rights act and the Arkansas Deceptive Trade Practices Act. The nursing homes moved to compel arbitration for all but two of the named plaintiffs, after which the plaintiffs moved for class certification. The circuit court granted Plaintiffs' motion for class certification without ruling on the motions to compel arbitration. The nursing homes brought an interlocutory appeal of the class-certification order and petitioned for writ of prohibition, mandamus, and certiorari. The Supreme Court granted the writ petition, vacating the order granting class certification, and ordered the circuit court to rule on the motions to compel before ruling on class certification, holding that the interlocutory appeal of the vacated class-certification order was moot. View "Reliance Health Care, Inc. v. Mitchell" on Justia Law

Plaintiffs Coronavirus Reporter, CALID, Inc., Primary Productions LLC, and Dr. Jeffrey D. Isaacs sued Defendant Apple for its allegedly monopolist operation of the Apple App Store. The district court dismissed the claims with prejudice for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6) and denied the remaining motions as moot. Plaintiffs-Appellants appealed.   The Ninth Circuit affirmed. The panel held that Plaintiffs failed to state an antitrust claim under Section 1 or Section 2 of the Sherman Act, arising from Apple’s rejection of their apps for distribution through the App Store, because they did not sufficiently allege a plausible relevant market, either for their rejected apps as compared to other apps, or for apps in general. The panel held that Plaintiffs failed to state a claim for breach of contract under California law because they did not identify relevant specific provisions of Apple’s Developer Agreement or Developer Program License Agreement or show that Apple breached a specific provision. View "CORONAVIRUS REPORTER, ET AL V. APPLE, INC., ET AL" on Justia Law

Defendant Klarna, Inc. ("Klarna") provides a "buy now, pay later" service that allows shoppers to buy a product and pay for it in four equal installments over time without incurring any interest or fees. Plaintiff paid for two online purchases using Klarna. Plaintiff incurred $70 in overdraft fees. Plaintiff brought this action on behalf of herself and a class of similarly situated consumers, alleging that Klarna misrepresents and conceals the risk of bank-overdraft fees that consumers face when using its pay-over-time service and asserting claims for common-law fraud and violations of the Connecticut Unfair Trade Practice Act ("CUTPA"). Klarna moved to compel arbitration. The district court denied Klarna's motion.   The Second Circuit reversed he district court's order and remanded with instructions to grant Klarna's motion to compel arbitration. The court explained that when Plaintiff arrived at the Klarna Widget, she knew well that purchasing the GameStop item with Klarna meant that she was entering into a continuing relationship with Klarna, one that would endure at least until she repaid all four installments. The Klarna Widget provided clear notice that there were terms that would govern this continuing relationship. A reasonable internet user, therefore, would understand that finalizing the GameStop transaction, entering into a forward-looking relationship with Klarna, and receiving the benefit of Klarna's service would constitute assent to those terms. The court explained that Plaintiff was on inquiry notice that her "agreement to the payment terms," necessarily encompassed more than the information provided on the Klarna Widget, and the burden was then on her to find out to what terms she was accepting. View "Najah Edmundson v. Klarna Inc." on Justia Law

Subscribers who bought health insurance filed a class action against Blue Cross, alleging that it violated the Sherman Antitrust Act by restricting the member plans’ ability to compete. At issue is whether the district court abused its discretion in approving a settlement agreement for a multi-district antitrust class action against the Blue Cross Blue Shield Association and its member plans.   The Eleventh Circuit affirmed. The court explained that the self-funded claimants were represented by their own counsel and class representatives in the settlement negotiations and received some compensation from the settlement. Although the settlement agreement’s allocation is facially unequal, it is not facially unfair. Further, the court held that the record supports the conclusion that the self-funded claimants and the fully insured claimants had at least potentially adverse interests. The district court did not abuse its discretion in dividing them into subclasses. Moreover, the court found that the district court also correctly applied the percentage-ofthe-fund doctrine. View "In Re: Blue Cross Blue Shield Antitrust Litigation" on Justia Law

BioCorRx, Inc. (BioCorRx) was a publicly traded company primarily engaged in the business of providing addiction treatment services and related medication. It issued several press releases that allegedly made misrepresentations and improperly disclosed confidential information about a treatment it was developing for opioid overdose. VDM Biochemicals, Inc. (VDM) specializes in the synthesis and distribution of chemicals, reagents, and other specialty products for life science research. It owned a patent (the patent) for VDM-001, a compound with potential use as a treatment for opioid overdose. In September 2018, VDM and BioCorRx entered into a Mutual Nondisclosure & Confidentiality Agreement (the NDA), which restricted each party’s disclosure of confidential information as they discussed forming a business relationship. A month later, VDM and BioCorRx signed a Letter of Intent to Enter Definitive Agreement to Acquire Stake in Intellectual Property (the letter of intent). The letter of intent memorialized the parties’ shared desire whereby BioCorRx would partner with VDM to develop and commercialize VDM-001. BioCorRx and VDM never signed a formal contract concerning VDM-001. Their relationship eventually soured. BioCorRx filed a complaint (the complaint) against VDM; VDM cross-complained. In response, BioCorRx filed the anti-SLAPP motion at issue here, seeking to strike all the allegations from the cross-complaint concerning the press releases. The Court of Appeal found these statements fell within the commercial speech exemption of California's Code of Civil Procedure section 425.16 (the anti-SLAPP statute) because they were representations about BioCorRx’s business operations that were made to investors to promote its goods and services through the sale of its securities. Since these statements were not protected by the anti-SLAPP statute, the Court reversed the part of the trial court’s order granting the anti-SLAPP motion as to the press releases. The Court affirmed the unchallenged portion of the order striking unrelated allegations. View "BioCorRx, Inc. v. VDM Biochemicals, Inc." on Justia Law

Plaintiff Armadillo Hotel Group, LLC (“Armadillo”) is a buyer and operator of modular and mobile structures throughout North America. According to Armadillo, Defendants Todd Harris and Jason McDaniel were hired in May 2019 to oversee Armadillo’s construction operations and its hotel, food, and beverage operations, respectively. McDaniel resigned in January 2021, Harris in July 2021. Harris and McDaniel asserted that they entered employment agreements with AHG Management as part of the joint venture, but AHG Management breached these agreements by failing to pay the agreed-upon salary, bonuses, and profit-sharing interests. They asserted claims of fraudulent inducement, negligent misrepresentation, tortious interference, and unjust enrichment. Harris, McDaniel, SDRS, and BMC moved to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. The district court granted the non-GML defendants’ motion to dismiss with prejudice.   The Fifth Circuit reversed. The court explained that it could not find sufficient information in the record to decide if Armadillo and AHG Management were in privity with each other. The fact that the same attorneys filed AHG Management’s amended state counterclaim and Armadillo’s federal complaint is insufficient to show privity. Accordingly, the court found that the district court did not have sufficient information or even assertions about the relationship of Armadillo and AHG Management to perform such an assessment. View "Armadillo Hotel v. Harris" on Justia Law

Plaintiff Van Sant & Co. (Van Sant) owned and operated a mobile home park in Calhan, Colorado, for a number of years. In 2018, Van Sant began to publicly explore the possibility of converting its mobile home park to an RV park. In October 2018, Calhan adopted an ordinance that imposed regulations on the development of new RV parks, but also included a grandfather clause that effectively exempted the two existing RV parks in Calhan, one of which was connected to the grandparents of two members of Calhan’s Board of Trustees (Board) who voted in favor of the new RV park regulations. Van Sant subsequently filed suit against Calhan, several members of its Board, the owners of one of the existing RV parks, and other related individuals. asserting antitrust claims under the Sherman Act, as well as substantive due process and equal protection claims under 42 U.S.C. § 1983. The defendants successfully moved for summary judgment. Van Sant appealed, but finding no reversible error, the Tenth Circuit affirmed. View "Van Sant & Co. v. Town of Calhan, et al." on Justia Law

The Supreme Court affirmed the opinion of the court of appeals affirming the decision of the trial court to grant summary judgment in favor of Defendants in this complaint alleging misappropriation of trade secrets, tortious interference with business contacts, tortious interference with business relationships, and conversion, holding that there was no error.Plaintiff, Hanneman Family Funeral Home and Crematorium, purchased a funeral home but did not retain the funeral home's director, Patrick Orians. Orians accepted employment at another funeral home, Chiles-Laman Funeral & Cremation Services, and used Plaintiff's customer information to solicit business for Chiles-Laman. Plaintiff sued Orians and Chiles-Laman (collectively, Defendants). The trial court entered summary judgment in favor of Defendants, and the court of appeals affirmed. The Supreme Court affirmed, holding (1) the information at issue was not protected by the Ohio Uniform Trade Secrets Act as a trade secret; and (2) Plaintiff's tort claims were preempted by the Ohio Uniform Trade Secrets Act. View "Hanneman Family Funeral Home & Crematorium v. Orians" on Justia Law