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13 Apr ' 15:17
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11 Apr ' 11:50
District Court Dismisses Follow-On Suit Challenging Blue Cross's "MFN-Plus' Contracts Under Both Per Se and Rule of Reason Standards
Posted on April 11, 2012 by Sheppard MullinThe District Court for the Eastern District of Michigan recently dismissed antitrust claims brought by the City of Pontiac against Blue Cross Blue Shield of Michigan's practice of requiring hospitals to enter into "MFN-Plus" contracts, which was alleged to have significantly raised prices to Blue Cross's competitors. City of Pontiac v. Blue Cross Blue Shield of Michigan, 2:11-cv-10276, Mem. Opinion and Order Regarding Blue Cross Blue Shield of Michigan's Motion to Dismiss (E.D. Mich. Mar. 30, 2012) ("Order"). The City's complaint was a follow-on to an antitrust suit filed by the U.S. Department of Justice and the Michigan Attorney General in the same Court, alleging Sherman Act violations of the same nature as set forth in the City's complaint. Despite the fact, however, that the DOJ's allegations were deemed to state viable antitrust claims, the same Court dismissed the City's complaint under both per se and rule of reason analyses.
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16 Mar ' 12:15
DOJ Wins AUO Convictions in LCD Price-Fixing Trial, Successfully Defending Its Cartel Program
Posted on March 16, 2012 byIn a widely followed eight-week trial before the Honorable Susan Illston in the Northern District of California, the Antitrust Division of the United States Department of Justice succeeded in obtaining price-fixing convictions against AU Optronics, a Taiwanese company; AUOA, its US subsidiary; and two senior executives. Two more junior executives were acquitted, and the jury hung as to a third executive. The jury also found that the gain from the conspiracy was at least $500 million, thereby triggering the Alternative Fine statute, 18 U.S.C. § 3571(d), and upping the companies' potential exposure to $1 billion. DOJ has trumpeted the convictions and finding of guilt as vindicating its cartel enforcement program.
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29 Feb ' 15:31
China Anti-Monopoly Law: What might we see in 2012?
Posted on February 29, 2012 by Sheppard MullinOn February 16, 2012 the Beijing office of Sheppard Mullin had a reception to celebrate the opening of new office space in China World Trade Center in the central business district. Firm Chairman Guy Halgren welcomed our 120-plus guests. Prior to the reception, Sheppard Mullin hosted a roundtable discussion on the Anti-Monopoly Law of China (“AML”). We had 18 participants, including in-house counsel for major corporations, as well as the German Chamber of Commerce. Our guest speaker, Mr. Zhang Yuqing, former director general counsel of the Chinese Ministry of Commerce (“MOFCOM”), who headed the inter-agency group which developed the AML, spoke on two topics which will probably be “hot” this year: a new regulation which will fine companies which didn’t report their transactions and went ahead with the transactions, and another regulation that deals with national security review. Gary Halling, head of Sheppard Mullin’s antitrust practice, spoke about recent enforcement trends in the U.S, specifically with respect to cartels. Michael Zhang of Sheppard Mullin’s Shanghai office also attended and gave his views on investment structures. The subsequent discussion among the participants was lively.
Sheppard Mullin hosts such roundtable discussions periodically, where we invite government officials and representatives of companies to exchange ideas and ask questions in an informal, off-the-record setting. If you are interested in participating in future roundtable discussions please contact Becky Koblitz, email address: bkoblitz@sheppardmullin.com. Below are the opening remarks of Becky Koblitz, Special Counsel, Beijing office of Sheppard Mullin Richter & Hampton LLP.
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21 Feb ' 15:01
New York Federal Court Holds That Meetings Related To Drafting Arbitration Clauses May Be Probative Of Antitrust Conspiracy Despite Decision Makers' Lack Of Knowledge
Posted on February 21, 2012 by Sheppard MullinIn In re Currency Conversion Fee Antitrust Litig., 2012 WL 401113 (S.D.N.Y. Feb. 8, 2012), Judge William H. Pauley III denied a motion for summary judgment by Defendants Discover and Citigroup after finding that a handful of meetings over four years by Defendants' in-house counsel related to drafting and implementing arbitration clauses was probative of an antitrust conspiracy. This was despite Plaintiffs' admitted paucity of evidence, overall weak circumstantial evidence, the absence of discussions of pricing terms, and the lack of knowledge about such meetings by Defendants' decision-makers.
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08 Feb ' 18:23
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07 Feb ' 12:24
In re American Express Merchants' Litigation - Plaintiffs Survive Three Rounds In The Second Circuit, But Can They Survive The Supreme Court?
Posted on February 7, 2012 by Sheppard MullinBy David Garcia and Leo Caseria
On February 1, 2012, the Second Circuit Court of Appeals decided In re American Express Merchants' Litigation, No. 06-1871-cv, (2d Cir. Feb. 1, 2012) ("AMEX III"), holding, for the third time, that a class action waiver in an arbitration agreement between American Express and plaintiff merchants was unenforceable because it would effectively preclude plaintiffs from vindicating their federal statutory rights under the Sherman and Clayton Acts. The Second Circuit's decision likely sets the stage for Supreme Court review, and a final decision on whether and under what circumstances class action waivers are enforceable in at least federal antitrust cases, and perhaps other types of federal statutory claims as well.
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04 Feb ' 22:16
Higher Filing Thresholds for HSR Act Premerge Notifications and Interlocking Directorates Announced
Posted on January 26, 2012 by Sheppard Mullin1. Higher Thresholds For HSR Filings
On January 24, 2012, the Federal Trade Commission announced revised, higher thresholds for premerger filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The filing thresholds are revised annually, based on the change in gross national product and will be effective thirty days after publication in the Federal Register. Publication is expected within a week, so the new thresholds will most likely become effective in late February 2012. Acquisitions that have not closed by the effective date will be subject to the new thresholds.
Copyright © 2012, Sheppard Mullin Richter & Hampton LLP. -
28 Dec ' 23:10
Allegations of Conspiracy to Limit Crop Production: Ripe for Analysis Under Capper-Volstead
Posted on December 28, 2011 by Sheppard MullinOn December 2, 2011, the district court denied a motion to dismiss antitrust conspiracy claims against potato grower cooperatives in several states. In re Fresh and Process PotatoesAntitrustLitigation, United States District Court for the District of Idaho, Case No. 4:10-MD-2186-BLW. The plaintiffs alleged that the defendant cooperatives agreed among themselves, through their cooperative structure, to restrict the output of their members by limiting potato planting acreages, paying farmers to destroy existing stocks, and refraining from bringing additional potatoes to market. The alleged purpose of the output-restricting conspiracy was to augment demand among direct purchasers of potatoes, thus driving up prices. The defendant cooperatives moved to dismiss on the ground that the allegations of antitrust conspiracy were immune, pursuant to the federal Capper-Volstead Act of 1922, 7 U.S.C. § 291-292.
RIM Defeats Sherman Act Section 2 Claims At Pleading Stage
Posted on December 28, 2011 by Sheppard MullinBy Thomas D. Nevins In “the latest installment in a contentious litigation”, defendant Research In Motion recently obtained an order granting its motion to dismiss plaintiff Eatoni's claims that RIM violated Section 2 of the Sherman Act and equivalent portions of New York’s Donnelly Act. Eatoni Ergonomics, Inc. v. Research In Motion Corp., No. 08-Civ. 10079 (WHP) (S.D.N.Y. Dec. 5, 2011), Memorandum and Order, p. 1 (Pauley, J.).
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12 Dec ' 05:16
Netflix Wins Summary Judgment Dismissal Of Consumer Class Antitrust Claims
Posted on December 9, 2011 by Sheppard MullinBy
Plaintiff Netflix subscribers alleged that Netflix and Wal-Mart violated Sections 1 and 2 of the Sherman Act by entering into to a horizontal market allocation agreement. In re: Online DVD Rental Antitrust Litigation, No. M 09-2029 PJH, Order Granting Motion For Summary Judgment (N.D. Cal. Nov. 22, 2011). Netflix and Walmart entered into a Promotion Agreement under which Netflix would rent but not sell DVDs online, and Walmart would sell but not rent DVDs online. Walmart would promote DVD rentals by Netflix, and Netflix would promote the sale of DVDs by Walmart.
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