Ninth Circuit Expands Reach of California Antitrust Law
In a recent decision in a price-fixing case, the U.S. Court of Appeals for the Ninth Circuit held that California’s antitrust statute, the Cartwright Act, can be applied to foreign and out-of-state defendants if some of the conspiratorial activity leading to sale of price-fixed goods took place in the state. The case involved the LCD price-fixing cartel. The Court of Appeals held that even if the purchases occurred outside California, the defendants’ conduct involved not just the sale or indirect purchase of price-fixed goods, but also the conspiratorial conduct that led to the sale of those goods. Accordingly, if a defendant’s conspiratorial conduct was sufficiently connected to California it was constitutional to apply California law.
The Mogin Law Firm, P.C. has long advocated this position in other cases involving foreign cartels, including In re DRAM, where we serve as co-lead counsel for the indirect purchaser class. This case could have a major impact on indirect purchaser class actions, allowing courts to certify nationwide classes under California law where plaintiffs can demonstrate that the alleged conspiratorial conduct is sufficiently connected to California.
Read the decision: AU Optronics Opinion.
The Mogin Law Firm, P.C. was one of the law firms representing the indirect purchaser class in the LCD case, which settled for a record $1.1 Billion.
For information about the LCD settlements, please visit https://lcdclass.com/Home.aspx.
Daniel J. Mogin, Esq.