Failure adequately to plead relevant product market and harm to competition leads to dismissal of antitrust complaint alleging resale price maintenance and horizontal price-fixing | Practical Law

Failure adequately to plead relevant product market and harm to competition leads to dismissal of antitrust complaint alleging resale price maintenance and horizontal price-fixing | Practical Law

In Jacobs v. Tempur-Pedic International, Inc., the Eleventh Circuit affirmed the dismissal of a class action complaint alleging resale price maintenance in violation of section 1 of the Sherman Act because the plaintiff failed to plead a relevant market and harm to competition as required under the rule of reason approach. The Eleventh Circuit also dismissed claims that alleged that a dual distribution system constituted a horizontal price fixing conspiracy for failure to plead that Tempur-Pedic and its distributors somehow signalled each other on how and when to maintain or adjust prices.

Failure adequately to plead relevant product market and harm to competition leads to dismissal of antitrust complaint alleging resale price maintenance and horizontal price-fixing

by Practical Law
Law stated as at 02 Dec 2010USA (National/Federal)
In Jacobs v. Tempur-Pedic International, Inc., the Eleventh Circuit affirmed the dismissal of a class action complaint alleging resale price maintenance in violation of section 1 of the Sherman Act because the plaintiff failed to plead a relevant market and harm to competition as required under the rule of reason approach. The Eleventh Circuit also dismissed claims that alleged that a dual distribution system constituted a horizontal price fixing conspiracy for failure to plead that Tempur-Pedic and its distributors somehow signalled each other on how and when to maintain or adjust prices.