The first half of 2024 has been a whirlwind of activity in the world of antitrust class actions, with significant developments across various industries. From major settlements to new case filings, the landscape is rapidly evolving, impacting businesses and consumers alike. In this blog post, we'll dive into the key movements that have shaped the year so far, offering insights into the sectors most affected and what these changes could mean for the future. Whether you're directly involved or just keeping an eye on industry trends, these updates are essential to understanding the broader implications of antitrust litigation today.
Surge in Antitrust Class Action Filings
The first half of 2024 has witnessed a remarkable surge in antitrust class action filings, with over 304 new cases making their way into Federal District Courts. This figure represents a significant jump from previous years, where the total number of filings rarely exceeded 300 annually.
Across the United States Federal District Courts, approximately 1,200 open cases are currently categorized under both “class action” and “antitrust,” with around 200 unique cases remaining after consolidation. While these figures represent class actions on behalf of businesses, they also represent consumers and individuals as well.
Major Multidistrict Litigation Cases Established Applicable to Businesses
In the first half of 2024, several new antitrust Multdistrict Litigations (MDLs) were formed, consolidating a large number of similar lawsuits into major cases. MDLs play a crucial role in streamlining litigation and highlight where the bulk of filings are concentrated, often pointing to areas where large class size and significant settlements could occur. By mid-year 2024, over 200 of the approximately 300 newly filed antitrust class actions were consolidated, many into the following MDLs.
New Multidistrict Litigations Formed
Apple Inc. Smartphone (Apple Inc. Smartphone Antitrust Litigation; 2:24-md-03113)(2024-06-07)
Following a suit brought forth by the Department of Justice, Apple iPhone customers have launched a lawsuit against Apple, accusing the tech giant’s agreements of being anticompetitive, locking innovators out of the market for digital apps, payments, messaging and other programs and device features.
Plaintiffs represent proposed classes of iPhone and iCloud plan purchasers.
Concrete and Cement Additives (IN RE: Concrete and Cement Additives Antitrust Litigation; 1:24-md-03097)(2024-04-18)
Following a European antitrust investigation into the construction industry, a group of construction chemical companies including Sika AG and Saint-Gobain face a class action lawsuit accusing them of price-fixing concrete and cement additives through an alleged conspiracy to raise prices as far back as 2018.
Plaintiffs represent proposed classes of direct and indirect purchasers, including those who purchased the concrete cement additives for commercial use, during a period beginning no later than May 2018.
Granulated Sugar (IN RE: Granulated Sugar Antitrust Litigation; 0:24-md-03110) (2024-06-07)
Indirect and Direct Purchasers of refined sugar have accused the country’s largest sugar manufacturers-including American Sugar Refining, United Sugar Producers & Refiners, and Michigan Sugar- of a yearslong conspiracy to inflate the cost of refined sugar through anticompetitive conduct.
Plaintiffs represent proposed classes of direct and indirect sugar buyers including bakeries, supermarkets, and consumers.
MultiPlan Health Insurance Provider Litigation (In re: MultiPlan Health Insurance Provider Litigation; MDL number 3121; Master Case designation pending)
In this lawsuit, healthcare providers allege the MultiPlan pricing tools used by large insurers including UnitedHealth, Aetna, and Cigna systematically underpay-out of network providers.
Plaintiffs represent a proposed class of all healthcare providers and practices within the United States that submitted claims for out-of-network healthcare services to any third-party payer that used MultiPlan’s repricing services and were reimbursed for those claims after MultiPlan’s “repricing” of such claims, in addition to all persons and entities who received reimbursement for out-of-network medical care from one or more of the Defendants or Co-Conspirators.
Passenger Vehicle Replacement Tires (IN RE: Passenger Vehicle Replacement Tires Antitrust Litigation; 5:24-md-03107) (2024-06-07)
Lawsuits started popping up after European competition officials investigated some of the largest tire companies for an alleged price-fixing conspiracy that inflated the price for new replacement tires. Goodyear, Michelin and Bridgestone are some of the tire manufacturers facing these allegations.
Plaintiffs represent indirect and direct purchasers of Tires from Defendants within the United States from at least as early as January 1, 2020.
Shale Oil (IN RE: Shale Oil Antitrust Litigation) (MDL No. 3119, Master Case designation pending)
U.S.-based shale producers have been accused of illegally colluding with the Organization of Petroleum Exporting Countries (OPEC) to keep gas prices artificially high. Shale oil accounts for over half of U.S. crude oil production, which in turn is a key raw material used in refining gasoline sold across the country.
The plaintiffs represent individuals and businesses who purchased retail gasoline (for personal and commercial use), residential heating oil, and commercial marine fuel.
Additional Newly Filed Cases Impacting Businesses
Beyond the newly established MDLs, a notable trend emerging in late 2023 and continuing into early 2024 has been the sharp increase in case filings related to algorithmic pricing and collusion software. This surge has had a profound impact on various industries, particularly Real Estate, Hospitality, and Healthcare, where these advanced technologies are increasingly scrutinized for potential antitrust violations. These filings highlight growing concerns about how algorithms and software tools might be used to manipulate pricing or coordinate actions between competitors, leading to a wave of litigation in these sectors.
Industries
Antitrust class action filings impact every industry, from agriculture to telecommunications. As with settlement volumes, the Pharmaceuticals and Financial Services sectors account for the largest share of open cases, with over one-third of all cases concentrated in these industries.
In recent years, the technology industry has experienced an uptick in legal filings following federal investigations by government enforcers like the FTC and DOJ into major tech companies such as Amazon, Apple, Google, and Facebook/Meta. Consumers, advertisers, publishers, and businesses alike have filed cases against these giants, alleging monopolization.
Antitrust Class Action Settlements: Over $670 Million Secured for Businesses in the First Half of 2024
In 2024 the pharmaceutical sector has continued its trend of reaching numerous settlements, a common occurrence in this industry due to the frequent litigation it faces. In addition, there have been significant financial settlements in cases involving LIBOR, Interest Rate Swaps and Euroyen, marking important resolutions in the financial sector.
The food industry has also experienced several notable settlements, with recent cases concluding and resulting in new agreements for both direct purchasers, like wholesalers and distributors, as well as commercial indirect purchasers such as restaurants, grocers, hospitals and universities. Notably, the long-running Northshore University HealthSystem Antitrust Litigation concluded after more than 15 years, bringing an end to one of the most prolonged legal battles in recent history.
January-June 2024 New Settlements Applicable to Businesses
Product/Service | Consolidated Case | New Settlement (s) | Civil Action # | Motion for Preliminary Approval Date (s) | |
|---|---|---|---|---|---|
Generic Pharmaceuticals | MDL No. 2724 IN RE: GENERIC PHARMACEUTICALS PRICING ANTITRUST LITIGATION | $325.5 million | 2:16-md-02724 | 2024-01-23; 2024-03-12; 2024-04-03; 2024-06-12 | |
Lipitor | MDL No. 2332 IN RE: Lipitor Antitrust Litigation | $128 million | 3:12-cv-02389 | 2024-02-14; 2024-05-03 | |
Effexor XR | PROFESSIONAL DRUG COMPANY, INC. v. WYETH, INC | $64.5 million | 3:11-cv-05479 | 2024-04-09; 2024-04-26 | |
Northshore University HealthSystem | In re: Northshore University HealthSystem Antitrust Litigation | $55 million | 1:07-cv-04446 | 2024-01-17 | |
Interest Rate Swaps | MDL No. 2704 IN RE: Interest Rate Swaps Antitrust Litigation | $46 million | 1:16-md-02704
| 2024-06-27 | |
Euroyen | Sonterra Capital Master Fund Ltd. et al v. UBS AG et al | $35 million | 1:15-cv-05844 | 2024-02-06 | |
Pork | MDL No. 2998 IN RE: Pork Antitrust Litigation | $7.285 million | 0:18-cv-01776 | 2024-04-05 | |
LIBOR-Based Financial Instruments | MDL No. 2262 IN RE: Libor-Based Financial Instruments Antitrust Litigation | $5.35 million | 1:11-md-02262
| 2024-04-11; 2024-05-28 | |
Packaged Seafood Products | MDL No. 2670 IN RE: Packaged Seafood Products Antitrust Litigation | $3.875 million | 3:15-md-02670 | 2024-04-05 |
Additional Milestones in the First Half of 2024
Class Certification (Rule 23 (b)(3) Damages) Specific to Businesses
Pork (MDL No. 2998 IN RE: Pork Antitrust Litigation; 0:18-cv-01776)
On the heels of incoming settlements, the Court granted class certification in May for three different groups of pork purchasers, including two classes involving businesses. These certified classes include a nationwide direct purchaser class and select state-based commercial and institutional indirect purchasers of pork, covering the period from June 2014 to June 2018.
Seroquel (In re: Seroquel XR (Extended Release Quetiapine Fumarate) Antitrust Litigation; 1:20-cv-01076)
In the Pharmaceuticals sector, a nationwide class comprising of individuals and entities that directly purchased brand or generic Seroquel XR from manufacturers between August 2015 and April 2017 was certified in February. Meanwhile, the motion filed by end-payors to certify a class of consumers and third-party payors, submitted in late 2023, is still under review by the Court.
Spotlight on Non-Business Class Actions
Businesses weren’t the only ones to secure antitrust settlements in the first half of 2024—athletes, students, employees, home sellers, and consumers also reached significant agreements.
In a landmark moment for sports and antitrust law, a proposed $2.77 billion name, image, and likeness settlement in the College Athlete Compensation case has captured nationwide attention aiming to provide student-athletes with compensation for damages along with an updated process for distributing scholarships and other benefits.
Another major settlement made headlines in March when the National Association of Realtors (NAR) agreed to pay $418 million to home sellers and implement rule changes to real estate transactions after facing criticism over its broker fee policies.
What’s Ahead and Where to Learn More
As we look ahead to the remainder of 2024, it’s clear that antitrust class action litigation will continue to be a dynamic and impactful area for businesses across all sectors. The developments we’ve seen in the first half of the year—marked by a surge in filings, the formation of significant MDLs, and substantial settlements—underscore the growing complexity and stakes involved in these cases. Businesses must remain vigilant and stay informed about the latest trends and legal precedents to navigate this challenging environment effectively.
The trends identified in this mid-year review highlight the critical need for businesses to adapt to an evolving legal landscape and provide a roadmap for understanding where future risks and opportunities may lie. Whether through proactive compliance measures or strategic legal defenses, well-prepared companies will be better positioned to mitigate potential liabilities and capitalize on emerging trends.
As we move into the latter half of the year, businesses must monitor ongoing litigation and new case filings that could reshape the competitive landscape. With significant settlements already on the horizon, the second half of 2024 promises to be as eventful. For those looking to stay ahead, continued monitoring and engagement with the latest developments in antitrust litigation will be crucial.
To stay updated on the latest trends and settlements, follow our blog at www.mcaginc.com and explore our proprietary database, available through our HUB, for exclusive insights and data that can help guide your business strategy in this ever-changing legal landscape.
Comments