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United States: Law360 – Rare Robinson-Patman ruling exhibits key antitrust risk

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In brief

On 20 May, the US District Court for the Central District of California affirmed a seven-figure jury verdict and granted a permanent injunction in a rare Robinson-Patman Act decision.

The RPA is an antitrust statute that prohibits certain kinds of price discrimination in goods purchased for resale.

The case, LA International Corp. v. Prestige Brands Holdings, was pursued by a group of local wholesaler plaintiffs that claimed a defendant eye drop manufacturer and its subsidiaries sold the plaintiffs eye drops on less favorable terms than the defendant’s club store wholesale customer.

The decision highlights the antitrust risks faced by suppliers that manage customers across different sales channels and participate in discount programs set up by their customers.

This Law360 explores the implications of this rare ruling.

Click here to read.

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Teisha Johnson is a member of Baker McKenzie's antitrust practice in Washington, DC. She advises clients on a wide range of antitrust and e-discovery matters, and has considerable experience counseling clients in government investigations, proposed mergers and acquisitions, compliance, and litigation matters.

Author

Dan is a senior associate in Baker McKenzie's North America Antitrust & Competition Practice Group.
Dan is an antitrust specialist whose practice focuses on merger control, civil conduct investigations, corporate counseling and compliance, and civil litigation. He advises client across a broad range of industries in matters before US and foreign competition authorities.
Dan maintains an active pro bono practice. He is also an active member of the ABA Section of Antitrust Law and is currently a Vice Chair for the Unfair Competition Committee.

Author

Heidi Smucker is an associate in Baker McKenzie's North America Antitrust and Competition Practice Group in Washington, DC. Having worked for the Federal Trade Commission, Heidi has gained knowledge from an insider’s perspective on a wide variety of antitrust matters, including mergers and acquisitions, HSR investigations, and second request compliance. Prior to joining Baker McKenzie, Heidi was a staff attorney at the Federal Trade Commission in the Bureau of Competition, where she worked on matters involving microprocessors, silicon technologies, and industrial chemicals and commodities. During law school, Heidi served as Senior Articles Editor for the Administrative Law Review and competed in the International Trademark Association’s Saul Lefkowitz Moot Court Competition. She also worked as a research assistant for Professor Elizabeth Earle Beske and spent a summer clerking for The Honorable Judge Tanya S. Chutkan in United States District Court for the District of Columbia.

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