Justia Antitrust & Trade Regulation Opinion Summaries

SBA filed suit seeking to enjoin rescission of an informal opinion letter issued by the FTC (the 2016 Letter). The 2016 Letter stated that it was the FTC staff's opinion that telemarketing technology used by SBA's members was subject to the FTC's regulation of so-called "robocalls," and it announced the rescission of a 2009 FTC staff letter that had reached the opposite conclusion. The DC Circuit dismissed the complaint for failure to state claim and held that because the 2016 staff opinion letter did not constitute the consummation of the Commission's decisionmaking process by its own terms and under the FTC's regulations, it was not final agency action. Finally, SBA's speech claims were pleaded as Administrative Procedure claims under 5 U.S.C. 706(2)(B) and could not proceed without final agency action. View "Soundboard Association v. FTC" on Justia Law

The Supreme Court reversed an interlocutory order granting a permanent injunction in favor of DataScout, LLC on its claims that Apprentice Information Systems, Inc. and David Randall Lamp (collectively, AIS) were liable for violations of the Freedom of Information Act (FOIA) and the Arkansas Deceptive Trade Practices Act (ADTPA) and for tortious interference with a business expectancy. The circuit court concluded that AIS was liable to DataScout and ordered a permanent injunction against AIS. The Supreme Court reversed, holding that the circuit court’s grant of a permanent injunction was an abuse of discretion because (1) DataScout only brought an action against a private entity under FOIA and failed to sue an entity covered by FOIA; (2) DataScout failed to prove with particularity any business expectancy with whom AIS interfered; and (3) DataScout’s ADPTA claim did not provide for injunctive relief. View "Apprentice Information Systems, Inc. v. DataScout, LLC" on Justia Law

The Supreme Court reversed an interlocutory order granting a permanent injunction in favor of DataScout, LLC on its claims that Apprentice Information Systems, Inc. and David Randall Lamp (collectively, AIS) were liable for violations of the Freedom of Information Act (FOIA) and the Arkansas Deceptive Trade Practices Act (ADTPA) and for tortious interference with a business expectancy. The circuit court concluded that AIS was liable to DataScout and ordered a permanent injunction against AIS. The Supreme Court reversed, holding that the circuit court’s grant of a permanent injunction was an abuse of discretion because (1) DataScout only brought an action against a private entity under FOIA and failed to sue an entity covered by FOIA; (2) DataScout failed to prove with particularity any business expectancy with whom AIS interfered; and (3) DataScout’s ADPTA claim did not provide for injunctive relief. View "Apprentice Information Systems, Inc. v. DataScout, LLC" on Justia Law

The Supreme Court reversed the circuit court’s final judgment awarding damages to DataScout, LLC on DataScout’s claims that Apprentice Information Systems, Inc. and David Randall Lamp (collectively, Appellants) violated the Arkansas Freedom of Information Act (FOIA) and the Arkansas Deceptive Trade Practices Act (ADTPA) and tortiously interfered with DataScout’s business expectancy. The Court held (1) for the reasons set out in another appeal decided today, Apprentice Information Systems, Inc. V. DataScout, LLC, 2018 Ark. 284, the circuit court’s findings that Appellants engaged in tortious interference with a valid business expectancy and violated FOIA are reversed; (2) the circuit court erred in finding that Appellants violated the ADTPA and in awarding compensatory damages; and (3) having no basis to award compensatory damages, the circuit court erred in awarding punitive damages to DataScout. View "Apprentice Information Systems, Inc. v. DataScout, LLC" on Justia Law

The Fourth Circuit Court of Appeals certified a question of South Carolina law to the South Carolina Supreme Court. Sarah Hartsock was killed in an automobile crash on Interstate 26 in Calhoun County, South Carolina. Her personal representative, Theodore Hartsock, Jr., brought a survival and wrongful death action asserting claims under South Carolina law for negligence, strict liability, and breach of warranty. Hartsock alleged that the vehicle in which Mrs. Hartsock was riding was struck head-on by another vehicle. That vehicle had crossed the median after suffering a blowout of an allegedly defective tire that Goodyear Dunlop Tires North America Ltd. and Goodyear Tire & Rubber Company [collectively "Goodyear"] designed, manufactured, and marketed. The federal court had subject-matter jurisdiction based upon complete diversity of citizenship between the parties and damages alleged to be greater than $75,000. During pretrial discovery a dispute arose between the parties over certain Goodyear material relating to the design and chemical composition of the allegedly defective tire. Goodyear objected to producing this material, asserting that it constituted trade secrets. The district court eventually found, and Hartsock did not dispute, that the material did, in fact, constitute trade secrets. However, the court ordered Goodyear to produce the material subject to a confidentiality order. In doing so, the court applied federal discovery standards, rejecting Goodyear's contention that South Carolina trade secret law applied. The federal appellate court asked the South Carolina Supreme Court whether South Carolina recognized an evidentiary privilege for trade secrets. The South Carolina Court responded yes, but that it was a qualified privilege. View "Hartsock v. Goodyear" on Justia Law

SawStop filed an antitrust suit against Table Saw Manufacturers, alleging that the Table Saw Manufacturers had colluded in contravention of antitrust laws to exclude its proprietary technology from the market. The Fourth Circuit affirmed the district court's grant of summary judgment to Table Saw Manufacturers based on statute of limitations grounds. The court held that the doctrine of fraudulent concealment was not applicable in this case; SawStop was on actual notice of its antitrust claim against the Table Saw Manufacturers; even if SawStop lacked actual notice of its antitrust claim, SawStop was on inquiry notice of that claim and SawStop failed to investigate its claim with the necessary diligence; and thus the district court did not err in granting summary judgment to the Table Saw Manufacturers. View "SD3 II, LLC v. Black & Decker" on Justia Law

Google agreed with competitors, such as Apple, not to initiate contact to recruit each others' employees. In 2010, the Department of Justice filed a civil antitrust action, alleging that the agreements illegally diminished competition for tech employees, denying them job opportunities and suppressing wages. On the same day, the companies entered into a stipulated judgment, admitting no liability but agreeing to an injunction prohibiting the "no cold call" arrangements. Google posted a statement online announcing the settlement and denying any wrongdoing, with a link to a Department of Justice press release, describing the settlement terms. There was widespread media coverage. In 2011, class action lawsuits were filed against the companies by employees who alleged that the cold calling restrictions had caused them wage losses. A consolidated action sought over $3 billion in damages on behalf of more than 100,000 employees. A derivative suit, filed by shareholders in 2014, claimed that the company suffered financial losses resulting from the antitrust and class action suits and that the agreements harmed the company’s reputation and stifled innovation. Based on a three-year statute of limitations, the trial court dismissed. The court of appeal affirmed, finding the suit untimely because plaintiffs should have been aware of the facts giving rise to their claims by at least the time of the Department of Justice antitrust action in 2010. View "Police Retirement System of St. Louis v. Page" on Justia Law

In 2017, Maryland enacted “An Act concerning Public Health – Essential Off-Patent or Generic Drugs – Price Gouging – Prohibition.” The Act, Md. Code, Health–General 2-802(a), prohibits manufacturers or wholesale distributors from “engag[ing] in price gouging in the sale of an essential off-patent or generic drug,” defines “price gouging” as “an unconscionable increase in the price of a prescription drug,” and “unconscionable increase” as “excessive and not justified by the cost of producing the drug or the cost of appropriate expansion of access to the drug to promote public health” that results in consumers having no meaningful choice about whether to purchase the drug at an excessive price due to the drug’s importance to their health and insufficient competition. The “essential” medications are “made available for sale in [Maryland]” and either appear on the Model List of Essential Medicines most recently adopted by the World Health Organization or are “designated . . . as an essential medicine due to [their] efficacy in treating a life-threatening health condition or a chronic health condition that substantially impairs an individual’s ability to engage in activities of daily living.” The Fourth Circuit reversed the dismissal of a “dormant commerce clause” challenge to the Act, finding that it directly regulates the price of transactions that occur outside Maryland. View "Association for Accessible Medicine v. Frosh" on Justia Law

Plaintiffs failed to state claims for tortious interference with contract, misappropriation of trade secrets, unfair and deceptive practices, civil conspiracy, and unjust enrichment sufficient to survive Defendants’ motion to dismiss pursuant to N.C. R. Civ. P. 12(b)(6).After Plaintiffs asserted various causes of action against Defendants, including the "Metropolitan defendants" and "dancer defendants," the Metropolitan defendants and dancer defendants filed motions to dismiss the amended complaint in its entirety pursuant to Rule 12(b)(6). The business court granted the motion to dismiss as to all of Plaintiffs’ claims except for the claims for breach of contract, fraudulent misrepresentation, unjust enrichment, and punitive damages against the dancer defendants. The Supreme Court affirmed as modified, holding (1) Plaintiffs failed to state valid claims for forties interference with contract, unfair and deceptive practices, and unjust enrichment against the Metropolitan defendants; (2) Plaintiffs failed to state valid claims for misappropriation of trade secrets and civil conspiracy against all defendants. View "Krawiec v. Manly" on Justia Law

Plaintiffs failed to state claims for tortious interference with contract, misappropriation of trade secrets, unfair and deceptive practices, civil conspiracy, and unjust enrichment sufficient to survive Defendants’ motion to dismiss pursuant to N.C. R. Civ. P. 12(b)(6).After Plaintiffs asserted various causes of action against Defendants, including the "Metropolitan defendants" and "dancer defendants," the Metropolitan defendants and dancer defendants filed motions to dismiss the amended complaint in its entirety pursuant to Rule 12(b)(6). The business court granted the motion to dismiss as to all of Plaintiffs’ claims except for the claims for breach of contract, fraudulent misrepresentation, unjust enrichment, and punitive damages against the dancer defendants. The Supreme Court affirmed as modified, holding (1) Plaintiffs failed to state valid claims for forties interference with contract, unfair and deceptive practices, and unjust enrichment against the Metropolitan defendants; (2) Plaintiffs failed to state valid claims for misappropriation of trade secrets and civil conspiracy against all defendants. View "Krawiec v. Manly" on Justia Law