Eastern District of New York Judge Roslynn Mauskopf granted summary judgment on the Sherman Act claim brought by a pair of video distributors against Universal Music & Video Distribution Corp., Ingram Entertainment Inc., and VPD IV Inc. Judge Mauskopf adopted Magistrate Judge Joan Azrack’s report and recommendation, which outlined how plaintiffs had failed to expose the existence of a supplier-dealer conspiracy. Plaintiffs argued that defendants met and maintained friendships between executives and that these relationships supported an inference that they conspired to exclude plaintiffs from distributing Universal product. But Judge Azrack rejected that contention, explaining that the evidence was ambiguous and did not demonstrate that the two engaged in a conspiracy to undercut or harm the plaintiffs’ businesses. Rather, Judge Azrack concluded that Universal might have acted alone in deciding to change its distribution program.
Although the Sherman Act claim was discharged, the case will continue on Robinson-Patman Act, breach of contract, and fraud claims.