California Supreme Court Bars Pass-on Defense for State Law Antitrust Claims

Mondaq Business BriefingUnited States Law Articles in English (2010)

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California Supreme Court Bars Pass-on Defense for State Law Antitrust Claims

On 12 July 2010, the California Supreme Court in Clayworth v. Pfizer, Inc., No. S166435, 2010 WL 2721021 (Cal. July 12, 2010), held that California law bars antitrust defendants from invoking a pass-on defense in most circumstances even though both direct and indirect purchasers may sue for treble damages. Defendants (or groups of defendants) in antitrust lawsuits are typically accused of illegally overcharging for their products. An overcharge would be initially borne by direct purchasers of the defend...

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