Justia Antitrust & Trade Regulation Opinion Summaries

This antitrust class action stemmed from an allegation that Dow Chemical Company conspired with its competitors to fix prices for polyurethane chemical products. Over Dow’s objection, the district court certified a plaintiff class including all industrial purchasers of polyurethane products during the alleged conspiracy period. The action went to trial, and the jury returned a verdict against Dow. The district court entered judgment for the plaintiffs, denying Dow’s motions for decertification of the class and judgment as a matter of law. Dow raised four issues on appeal, all of which the Tenth Circuit rejected. Accordingly, the Court affirmed the district court. View "In re: Urethane AntiTrust Litigation" on Justia Law

The issue this case presented for the Court of Appeal's review centered on whether federal law preempted the effort by a district attorney to recover civil penalties under California’s Unfair Competition Law (UCL) based on an employer’s alleged violation of workplace safety standards. Petitioners Solus Industrial Innovations, Emerson Power Transmission Corp., and Emerson Electric Co. (collectively Solus) argued the trial court erred by overruling their demurrer to two causes of action filed against them by Respondent, the Orange County District Attorney, alleging a right to recover such penalties. Solus argued that federal workplace safety law (Fed/OSHA) preempted any state law workplace safety enforcement mechanism which has not been specifically incorporated into the state workplace safety plan approved by the U.S. Secretary of Labor. The district attorney argued that once a state workplace safety plan has been approved by the Secretary of Labor, the state retains significant discretion to determine how it will enforce the safety standards incorporated therein, and thus the state may empower prosecutors to enforce those standards through whatever legal mechanism is available when such a case is referred to them. The trial court agreed with the district attorney and overruled Solus’s demurrer. But the court also certified this issue as presenting a controlling issue of law suitable for early appellate review under Code of Civil Procedure section 166.1. Solus then filed a petition for writ of mandate asking the Court of Appeal to review the trial court’s ruling. After the Court summarily denied the petition, the California Supreme Court granted review and transferred the case back to the Court of Appeal with directions to issue an order to show cause. In the course of its opinion, the Court of Appeal noted that the UCL was not even in effect when California’s plan was approved. The California Supreme Court then granted review, and transferred the matter back to the Court of Appeal with directions to reconsider the matter in light of former Civil Code section 3370.1 repealed by stats. 1977, ch. 299, sec. 3, p. 1204. Having done so, the Court of Appeal again concluded that the district attorney’s reliance on the UCL to address workplace safety violations was preempted. View "Solus Industrial Innovations, LLC v. Super. Ct." on Justia Law

Appellee, Peter Rosenow, brought a class-action complaint individually and on behalf of similarly situated persons against Appellants, Alltel Corporation and Alltel Communications, Inc. (collectively, Alltel), alleging violations of the Arkansas Deceptive Trade Practices Act and unjust enrichment arising from Alltel’s imposition of an early termination fee on its cellular-phone customers. Alltel filed a motion seeking to compel arbitration based on an arbitration clause contained in its “Terms and Conditions.” The circuit court denied the motion, concluding that Alltel’s arbitration provision lacked mutuality. The Supreme Court affirmed, holding that the circuit court did not err in finding that a lack of mutuality rendered the instant arbitration agreement invalid. View "Alltel Corp. v. Rosenow" on Justia Law

Plaintiffs, two motor vehicle dealers and an organization that represents the interests of new automobile and truck franchised dealerships in the state, filed this action against Tesla Motors, Inc., an automobile manufacturer, and Tesla Motors MA, Inc., its Massachusetts subsidiary, alleging violations of Mass. Gen. Laws ch. 93B and conspiracy to violate chapter 93B. The superior court dismissed Plaintiffs’ complaint, concluding that Plaintiffs lacked standing to maintain the action because they were not affiliated dealers of Tesla or Tesla MA. At issue before the Supreme Judicial Court was whether the 2002 amendments to chapter 93B broadened the scope of standing under the statute since the Court’s 1985 decision in Beard Motors, Inc. v. Toyota Motor Distribs., Inc. such that Massachusetts motor vehicle dealers now have standing to maintain an action for an alleged violation of the statute against unaffiliated motor vehicle manufacturers or distributors. The Court affirmed, holding that chapter 93B does not confer standing on a motor vehicle dealer to maintain an action for violation of the statute against a manufacturer with which the dealer is not affiliated. View "Mass. State Auto. Dealers Ass’n, Inc. v. Tesla Motors MA, Inc." on Justia Law

The Federal Trade Commission (FTC) filed a complaint alleging that Defendants fraudulently marketed and sold debt-related services, failed to provide those services, and retained money as upfront fees in violation of the FTC Act, 15 U.S.C. 45(a); the Telemarketing Sales Rule, 16 C.F.R. 310; and the Mortgage Assistance Relief Services Rule, 12 C.F.R. 1015. The FTC also sought a temporary restraining order and a preliminary injunction, and provided more than 1,000 pages of exhibits. Defendants sought to stay proceedings, asserting that a criminal investigation had been launched into their business activities, as evidenced by a raid conducted by the Royal Canadian Mounted Police that resulted in seizure of records they claim were necessary to defend against the FTC’s allegations. The district court denied the motion; the FTC and Defendants entered into a stipulated preliminary injunction. Defendants later renewed the motion for a stay, claiming that they were unable to access critical records. Without explanation, the district court denied the motion and later granted the FTC’s motion for summary judgment, ordering Defendants to jointly pay restitution in the amount of $5,706,135.48 to injured consumers. The Sixth circuit affirmed, finding clear evidence of the violations. View "Fed. Trade Comm'n v. E.M.A. Nationwide, Inc." on Justia Law

Fair Wind owns sailing schools, including one in St. Thomas, Virgin Islands. In 2007 Fair Wind hired Bouffard as a captain and instructor, under a contract precluding Bouffard from joining a competitor within 20 miles of the St. Thomas school for two years after the end of his employment. In 2010, relying on Bouffard View "Fair Wind Sailing Inc v. Dempster" on Justia Law

Ferring and Watson market competing prescription progesterone products. Progesterone plays a key role in helping women become pregnant and maintain pregnancies by preparing and maintaining the uterine lining to support the embryo during early pregnancy. Historically, women have received progesterone through intramuscular shots, which are not FDA-approved and which patients consider painful. Both companies manufacture a product that administers progesterone to women through vaginal inserts rather than shots. Ferring’s product, Endometrin, is delivered in capsule form. Watson’s product, Crinone, is a gel delivered via applicator. Ferring unsuccessfully sought a preliminary injunction under the Lanham Act, based on two presentations made by Watson in 2012 to healthcare professionals concerning Crinone. Watson’s consultant, Dr. Silverberg made statements concerning a “Black Box” warning on Endometrin’s package insert; a patient preference survey comparing the products; and Endometrin’s effectiveness in women over the age 35. Silverberg was alerted to the inaccuracy of his statement about a Black Box warning after the first webcast and certified to Ferring and to the court that he would not repeat the statement. The district court held that Ferring failed to demonstrate irreparable harm. The Third Circuit affirmed, citing Supreme Court holdings that a party bringing a claim under the Lanham Act is not entitled to a presumption of irreparable harm when seeking a preliminary injunction and must demonstrate that irreparable harm is likely. View "Ferring Pharm. Inc. v. Watson Pharm., Inc." on Justia Law

After leaving Gensler, an architectural firm with projects throughout the world, where he had been a Design Director, Strabala opened his own firm, 2Define Architecture. Strabala stated online that he had designed five projects for which Gensler is the architect of record. Gensler contends that Strabala’s statements, a form of “reverse passing off,” violated section 43(a) of the Lanham Act, 15 U.S.C.1125(a). The district court dismissed, ruling that, because Strabala did not say that he built or sold these structures, he could not have violated section 43(a), reading the Supreme Court decision Dastar Corp. v. Twentieth Century Fox (2003), to limit section 43(a) to false designations of goods’ origin. The Seventh Circuit vacated, reasoning that Gensler maintains that Strabala falsely claims to have been the creator of intellectual property. View "M. Arthur Gensler, Jr. & Assocs., Inc. v. Strabala" on Justia Law

Defendant appealed from the district court's grant of summary judgment to the FTC and its order permanently enjoining defendant from engaging in a variety of marketing tactics, and ordering him to pay restitution. The court concluded that the district court properly held defendant personally liable for both injunctive relief and the requirement to pay restitution with respect to all of the marketing schemes at issue, with the exception of the Acai Total Burn scheme; individual liability for corporate malfeasance is available for violations of the Electronic Funds Transfer Act (EFTA), 15 U.S.C. 1693, because such violations are also deemed to be violations of the Federal Trade Commission Act (FTC Act), 15 U.S.C. 41-58, and that defendant is liable for Vertek's, defendant's wholly controlled company, violations of the EFTA because of his personal involvement in concocting and carrying out the several schemes that violated the EFTA; and defendant's challenges to the scope of the district court's injunction are unavailing. Accordingly, the court affirmed the district court's grant of summary judgment to the FTC in part, and vacated the district court's grant of summary judgment to the FTC with respect to the Acai Total Burn scheme. The court remanded so that the district court could modify its permanent injunction and the amount of restitution. View "FTC v. Kimoto" on Justia Law

Astellas holds patents on a cardiac test and sells its unpatented pharmaceutical product, Adenoscan, for using during that test. The Medical Center, which conducts cardiac tests, filed suit under Section 1 of the Sherman Act, 15 U.S.C. 1, alleging that Astellas is able to overcharge the Medical Center for the Adenoscan product by unlawfully tying the patented right to perform the patented cardiac test to the purchase of the unpatented Adenoscan. The court concluded that the district court did not abuse its discretion in refusing the Medical Center's request to certify a class seeking damages against Astellas for unlawful tying because the direct purchaser rule precludes the Medical Center's own treble damages claim. The district court also did not abuse its discretion in refusing to certify the class for purposes of seeking injunctive and declaratory relief. Accordingly, the court affirmed the judgment of the district court. View "Lakeland Regional Medical Center v. Astellas US, LLC, et al." on Justia Law