Telecom antitrust suit can't proceed-top US court

Lawyer Blogs

[##_1L|1099055010.jpg|width="180" height="122" alt=""|_##]The U.S. Supreme Court ruled on Monday that an antitrust lawsuit against Verizon and other regional Bell companies cannot proceed without specific allegations to back it up. By a 7-2 vote, the justices reversed a U.S. appeals court ruling that allowed the class action antitrust lawsuit to go forward on a general allegation that Verizon predecessor Bell Atlantic Co. and other Bell companies had conspired not to compete in each other's territories.

"We hold that such a complaint should be dismissed," Justice David Souter wrote for the court majority.

At issue is a class action lawsuit against Bell Atlantic, which contends that lack of competition for local telephone service and "parallel conduct" of the regional Bells were evidence of an antitrust conspiracy.

More than a decade after the court-ordered breakup of AT&T into seven regional Bells, Congress passed a landmark legislation in 1996 designed to foster competition among carriers. It required regional Bells such as Verizon to make their networks available to rivals in exchange for gaining access to the lucrative long-distance voice and data markets.

The case was dismissed by a district court judge, who said the plaintiffs could not sue based only on a "bare-bones" allegation of conspiracy.

But that decision was reversed by a federal appeals court in New York, which ruled the case should not be dismissed unless the charges were implausible.

The U.S. Justice Department's antitrust division has sided with the telephone companies, arguing that "parallel action and inaction" alone was not enough to provide a basis for an antitrust lawsuit.

The Supreme Court's majority opinion agreed, ruling that an allegation of parallel conduct and a bare assertion of conspiracy is not enough. There must be enough facts to suggest an agreement was made, Souter said.


Related listings

  • Federal court: Three guilty of FEMA fraud

    Federal court: Three guilty of FEMA fraud

    Lawyer Blogs 05/20/2007

    [##_1L|1145869747.jpg|width="101" height="102" alt=""|_##]Three people have been sentenced in federal court in Biloxi on charges of illegally receiving disaster payments from the Federal Emergency Management Agency for debris cleanup after Hurricane ...

  • No-Confidence Vote Sought on Gonzales

    No-Confidence Vote Sought on Gonzales

    Lawyer Blogs 05/18/2007

    [##_1L|1317403199.jpg|width="100" height="131" alt=""|_##]Two leading Senate Democrats called for a vote of no confidence in Attorney General Alberto R. Gonzales yesterday as political pressure for his resignation intensified in the wake of revelatio...

  • White House, senators strike immigration reform deal

    White House, senators strike immigration reform deal

    Lawyer Blogs 05/18/2007

    [##_1L|1139034333.jpg|width="140" height="135" alt=""|_##]Key US senators from both political parties and White House cabinet officers reached a tentative agreement on immigration reform on Thursday, after weeks of negotiations. The proposal, which P...

New York Commercial Litigation Law Firm - Woods Lonergan PLLC

Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read