Supreme Court Holds That The Federal Securities Laws Implicitly Preclude Application Of The Antitrust Laws To The Underwriting Of Initial Public Offerings

On June 18, the Supreme Court held that the United States securities laws implicitly preclude application of the antitrust laws to allegedly collusive conduct by syndicates of underwriters participating in initial public offerings. The Court reached its decision on the grounds that there is a "plain repugnancy" between the antitrust laws and the extensive regulatory program governing the offering of securities enforced by the SEC under the securities laws. Credit Suisse Securities (USA) LLC, f/k/a Credit Suisse First Boston LLC, et al. v. Billing, et al., ? S.Ct. ?, Case No. 05-1157, 2007 WL 1730141 (June 18, 2007).

The decision undoubtedly will have important implications regarding the extent to which the antitrust laws may be applied to other conduct regulated by the securitites laws, or in the context of other regulated industries. In addition, the decision will make it more difficult for class plaintiffs to use other laws to avoid the strictures of the securitites laws, particularly as courts...