Update December 2010: The U.S. Supreme Court denied certiorari on the preemption issue.
Update January 2009: The court dismissed the indirect purchasers’ state law claims, holding that they were preempted by the Staggers Rail Act. Under Federal antitrust law, indirect purchasers may seek injunctive relief but not damages. Many state antitrust laws, by contrast, permit indirect purchasers to recover damages. The court held that state law damages claims against railroads were preempted by the Staggers Act.
In In re: Rail Freight Fuel Surcharge Antitrust Litigation, District of Columbia Federal Disctrict Court Judge Paul Friedman denied defendant railroad’s motion to dismiss a class action alleging that the defendants agreed to fix fuel surcharges. Relying on Twombley, the railroads argued that the class had failed to sufficiently allege a conspiracy. The court found that detailed allegations of price uniformity following meetings at which other agreements were reached was sufficient to survive a motion to dismiss.
One Comment