Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Monday, May 21, 2007

Twombly is Out - Supreme Court Reverses 2nd Circuit

Posted by D. Daniel Sokol

The Supreme Court decision in Twombly just came out.  I cannot say that I am surprised by the decision nor do I disagree with it.  We don't want to allow for unnecessary fishing expeditions in our court system.  If there is a good case, there should be evidence to support it. 

The important quote is the following:

In applying these general standards to a §1 claim, we hold that stating such a claim requires a complaint with enough factual matter (taken as true) to suggest that an agreement was made. Asking for plausible grounds to infer an agreement does not impose a probability requirement at the pleading stage; it simply calls for enough fact to raise a reasonable expectation that discovery will reveal evidence of illegal agreement... It makes sense to say, therefore, that an allegation of parallel conduct and a bare assertion of conspiracy will not suffice. Without more, parallel conduct does not suggest conspiracy, and a conclusory allegation of agreement at some unidentified point does not supply facts adequate to show illegality. Hence, when allegations of parallel conduct are set out in order to make a §1 claim, they must  be placed in a context that raises a suggestion of a preceding agreement, not merely parallel conduct that could just as well be independent action.

You can download the decision below.
Download Twombly2007.pdf

http://lawprofessors.typepad.com/antitrustprof_blog/2007/05/twombly_is_out_.html

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