Justia Antitrust & Trade Regulation Opinion Summaries
Articles Posted in Class Action
Philip Morris Cos., Inc. v. Miner
Plaintiffs filed a class action complaint against Philip Morris Companies Inc. and Philip Morris Inc., alleging that Philip Morris violated the Arkansas Deceptive Trade Practices Act (ADTPA) by falsely advertising that its Marlboro Lights cigarettes were safer and contained less tar and nicotine than other cigarettes. The circuit court certified Plaintiffs’ class action, concluding that common issues among all class members predominated over any individual issues and that a class action was a superior method of resolving the claim. The Supreme Court affirmed the circuit court’s order certifying the class, holding that the circuit court did not abuse its discretion in certifying the class, as common issues predominated, a class action was a superior method of adjudication, and the class was ascertainable. View "Philip Morris Cos., Inc. v. Miner" on Justia Law
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Antitrust & Trade Regulation, Class Action
In re Nexium Antitrust Litig.
AstraZeneca, which sells a heartburn drug called Nexium, and three generic drug companies (“generic defendants”) that sought to market generic forms of Nexium, entered into settlement agreements in which the generic defendants agreed not to challenge the validity of the Nexium patents and to delay the launch of their generic products. Certain union health and welfare funds that reimburse plan members for prescription drugs (the named plaintiffs) alleged that the settlement agreements constituted unlawful agreements between Nexium and the generic defendants not to compete. Plaintiffs sought class certification for a class of third-party payors, such as the named plaintiffs, and individual consumers. The district court certified a class. Relevant to this appeal, the class included individual consumers who would have continued to purchase branded Nexium for the same price after generic entry. The First Circuit affirmed the class certification, holding (1) class certification is permissible even if the class includes a de minimis number of uninjured parties; (2) the number of uninjured class members in this case was not significant enough to justify denial of certification; and (3) only injured class members will recover. View "In re Nexium Antitrust Litig." on Justia Law
Hyland v. HomeServices of America, Inc.
Class representatives sued Kentucky real estate firms, alleging violation of Section 1 of the Sherman Antitrust Act, 15 U.S.C. 1, by participating in a horizontal conspiracy to fix commissions charged in Kentucky real estate transactions at an anti-competitive rate. The certified class consists of people who sold residential real estate in Kentucky from 2001 to 2005, and used the services of defendants. Several defendants settled. The district court entered summary judgment for remaining defendants, excluding the opinions of plaintiffs’ experts with respect to whether collusion among the defendants was the likely economic explanation of the pricing of commissions. The Sixth Circuit affirmed, stating that although the plaintiffs produced a good deal of circumstantial evidence that would support a theory of collusion, the conduct at issue was also consistent with permissible competition. View "Hyland v. HomeServices of America, Inc." on Justia Law
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Antitrust & Trade Regulation, Class Action
In re: Urethane AntiTrust Litigation
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
Alltel Corp. v. Rosenow
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
In re: Refrigerant Compressors Antitrust Litigation
Suits consolidated under 28 U.S.C. 1407 alleged antitrust violations of price fixing and dividing markets by the manufactures of cooling compressors. The district court dismissed the claims of some of the indirect-buyer plaintiffs and declined to enter a final judgment under Civil Rule 54(b) or to certify an interlocutory appeal under 28 U.S.C. 1292. The Sixth Circuit dismissed an appeal for lack of jurisdiction, concluding that the order did not amount to a “final” decision from which the dismissed plaintiffs may appeal. When a single action involves multiple claims or multiple parties, a ruling that disposes of only some claims or only some parties is ordinarily not “final;” the rule is not different for consolidated multi-district cases. View "In re: Refrigerant Compressors Antitrust Litigation" on Justia Law
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Antitrust & Trade Regulation, Class Action
Eller, et al. v. NFL Players Assoc., et al.
This case concerned the 2011 NFL lockout. Active NFL players filed a class action suit (Brady suit) against the NFL, alleging violations of the federal antitrust laws and other claims. Retired NFL players also filed suit against the NFL and its teams, alleging antitrust violations (Eller I suit). After both actions were consolidated, the Brady suit was settled, the players re-designated the NFLPA as their collective bargaining agent, the NFL and NFLPA signed a new collective bargaining agreement (CBA) incorporating the settlement terms, the Brady plaintiffs dismissed their action, the lockout ended, and the 2011 NFL season commenced. Carl Eller and other retired NFL players (plaintiffs) then filed this class action (Eller II) against the NFLPA and others. The district court granted defendants' motion to dismiss and plaintiffs appealed, alleging claims for intentional interference with prospective economic advantage under Minnesota law. The court concluded that no reasonable jury could find that plaintiffs had a reasonable expectation of a prospective separate contractual relation with the NFL that would provide more than the increased benefits provided in the 2011 CBA. Even if plaintiffs alleged a reasonable expectation of prospective contractual relations or economic advantage with the NFL, plaintiffs failed to allege facts proving that defendants improperly or wrongfully interfered with these advantageous prospects. Accordingly, the court affirmed the judgment of the district court. View "Eller, et al. v. NFL Players Assoc., et al." on Justia Law
Somers v. Apple, Inc.
Plaintiff filed suit against Apple alleging federal and state antitrust claims. Plaintiff alleged that Apple encoded iTS music files with its proprietary Digital Rights Management (DRM), called FairPlay, which rendered iTS music and the iPod compatible only with each other. Plaintiff also alleged claims that through certain software updates, Apple excluded competitors and obtained a monopoly in the portable digital media player (PDMP) and music download markets, which inflated Apple's music prices and deflated the value of the iPod. On appeal, plaintiff challenged the district court's July 2009 order denying her motion to certify a class of indirect purchasers of the iPod under Rule 23(b)(3). The court concluded that, because plaintiff abandoned the individual claim for which she sought class certification, the issue of whether the district court erred in denying her motion to certify that claim for class treatment was waived. The court also concluded that the district court properly dismissed plaintiff's monopolization claim for damages based on the theory of diminution in iPod value on the ground that it was barred by Illinois Brick Co. v. Illinois; properly dismissed plaintiff's claim for damages based on supracompetitive music prices; and properly dismissed plaintiff's claims for injunctive relief where plaintiff's alleged inability to play her music freely was not an "antitrust injury" that affected competition and could, therefore, not serve as the basis for injunctive relief. Accordingly, the court affirmed the district court's denial of class certification and dismissal of plaintiff's complaint with prejudice. View "Somers v. Apple, Inc." on Justia Law
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Antitrust & Trade Regulation, Class Action
Jacobsen v. Allstate Ins. Co.
This interlocutory appeal arose from the district court's order certifying a class in Plaintiff's class action against Defendant, Allstate Insurance Company. Plaintiff's class action claim arose out of the Supreme Court's remand of his initial non-class third-party claim against Allstate in Jacobsen I. In Jacobsen I, Plaintiff filed a complaint against Allstate for, among other causes of action, violations of the Montana Unfair Trade Practices Act. Plaintiff sought both compensatory and punitive damages. The Supreme Court ultimately remanded the case for a new trial. On remand, Plaintiff filed a motion for class certification, proposing a class definition encompassing all unrepresented individuals who had either third- or first-party claims against Allstate and whose claims were adjusted by Allstate using its Claim Core Process Redesign program. The district court certified the class. The Supreme Court affirmed the class certification but modified the certified class on remand, holding that the district court did not abuse its discretion by certifying the Mont. R. Civ. P. 23(a)(2) class action but that the certification of class-wide punitive damages was inappropriate in the context of a Rule 23(b)(2) class. Remanded. View "Jacobsen v. Allstate Ins. Co." on Justia Law
Mayor and City Council of Baltimore v. Citigroup, Inc.
Plaintiffs in this consolidated action sought relief on behalf of two large putative classes - one whose members bought auction rate securities and one whose members issued them - alleging that defendants triggered the market's collapse by conspiring with each other to simultaneously stop buying auction rate securities for their own proprietary accounts. The district court dismissed plaintiffs' complaints pursuant to Rule 12(b)(6). The court affirmed, holding that plaintiffs' complaints did not successfully allege a violation of Section 1 of the Sherman Act, 15 U.S.C. 1. Although the court did not reach the district court's implied-repeal analysis under Credit Suisse Securities (USC) LLC v. Billing, the district court was ultimately correct that the complaints failed to state a claim upon which relief could be granted.View "Mayor and City Council of Baltimore v. Citigroup, Inc." on Justia Law