People v. Pratibha Syntex Ltd., No. BC499751 (Cal. Super. Ct., LA Cty. Dec. 10, 2015)

October 9, 2020

Plaintiff state filed suits against international apparel manufacturer for gaining an unfair competitive advantage over American companies by using pirated software in the production of clothing imported and sold in California. The complaint alleged that the foreign apparel manufacturer, based in India, who did not paid software licensing fees has a significant cost advantage in the low-margin business of apparel manufacturing, shipment and sales. The company did not pay licensing fees for software products manufactured by Adobe, Microsoft, Symantec and others. Since 2010, Pratibha shipped approximately 19,000 pounds of apparel products into California. The complaint alleges that the company obtained an unfair advantage because it can redirect money saved by using pirated software to hire employees and to expand their facilities and their research and development efforts. Furthermore, American companies that are developing software, particularly software that is used in the garment industry, are discouraged from investing in new technology and products if they know their software will be used illegally. In December 2015, a settlement was reached, the first time a state has secured a legally enforceable judgment against an international company for these types of violations. The settlement requires Pratibha Syntex to pay $100,000 in restitution within 30 days. The settlement prohibits Pratibha Syntex from using unlicensed software or reproducing any part of a copyrighted software program without the permission of the legitimate copyright holder, and further requires the company to perform four complete audits of the software on their computers and fix any violations within 45 days. In addition, Pratibha Syntex must draft an information technology policy statement regarding the use of licensed software and distribute this policy to all employees

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Maryland et al. v. Perrigo Company, No. 1:04CV01398 (D.D.C. Aug. 17, 2004)

October 9, 2020

The FTC and states alleged that the companies had entered into a “pay-for-delay” arrangement, whereby Perrigo paid Alpharma to withdraw its generic version from the market for Children’t ibuprofen.According to the complaint, in June 1998, Perrigo and Alpharma signed an agreement allocating to Perrigo the sale of OTC children’s liquid ibuprofen for seven years. In exchange for agreeing not to compete, Alpharma received an up-front payment and a royalty on Perrigo’s sales of children’s liquid ibuprofen. The FTC received $6.25 million to compensate injured consumers. The states received $1.5 million in lieu of civil penalties. the parties were enjoined from future agreements.

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People of the State of California v. EBay, Inc., No. CV12-5874 (N.D. Cal. Nov. 16, 2012)

October 9, 2020

State filed suit (simultaneous with USDOJ suit) alleging EBay and Intuit agreed from 2008 to 2009 not to hire one another’s employees. This agreement, allegedly enforced at the highest levels in the companies, prevented employees from seeking positions at the other companies. USDOJ filed a separate suit, but California’s seeks to enforce California laws which contain stronger protections against anti-competitive conduct than federal law. California reached a settlement with eBay for approximately $4 million in restitution to employees, damages for harm to the state’s economy, and civil penalties

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In re DDAVP Antitrust Litigation

October 9, 2020

33 states investigated “pay for delay” allegations relating to DDAVP, a drug used to alleviate bed-wetting. States alleged that Aventis, holder of the patent for the medication, engaged in a scheme to delay the regulatory approval and sale of a generic version of DDAVP, in violation of state and federal antitrust law. States and defendants entered into a settlement under which states received $3.45 million, not as a civil penalty and defendants did not admit guilt.

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U.S. and Plaintiff States v. AT&T, No. 11-01560 (D.D.C, 2011)

October 9, 2020

AT&T sought to acquire T-Mobile. The transaction would have combined two of the only four wireless carriers with nationwide networks. US DOJ and six states filed suite to block the merger. The parties abandoned the merger three months later.

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People of the State of California v. Bioelements, Inc.

October 9, 2020

State sued and entered into settlement with Bioelements, a maker of “cosmeceuticals” for skin care. Bioelements had entered into agreements with retailers fixing the prices at which Bioelements products could be sold on the Internet. Settlement enjoined the conduct and Bioelements paid $51,000 in civil penalties and attorneys fees.

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People of the State of California v. AU Optronics Corp., No. CGC-10-504651 (Super. Ct. San. Fran. Cty. 2010)

October 9, 2020

Plaintiff state filed an antitrust action against several major technology companies for
illegally fixing prices for liquid crystal display (“LCD”) screens used in computers, televisions, and cell phones. The lawsuit seeks to recover damages suffered from 1998 to 2006 by Washington and other public purchasers that purchased computers and other goods containing the price-fixed screens. The suit seeks damages, restitution, and civil penalties on behalf of the state and as parens patriae for state consumers.

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United States and Plaintiff States v. Comcast Corp., No. 1:11-cv-00106 (D.D.C., Jan. 18, 2011)

October 9, 2020

USDOJ and five states challenged the joint venture between Comcast and NBC Universal, alleging that it would harm competition in cable programming, with Comcast controlling NBC and NBCU programming. The parties reached a settlement, and the FCC also reached a separate settlement with Comcast and NBC. The settlements impose a number of restrictions and limitations on the merger to ensure that competing distributors have fair access to NBC and NBCU content. The settlements also address several areas of the joint venture’s operations. The DOJ and states’ settlement particularly focuses on requiring Comcast/NBC to make content available to online video distributors; requires NBC to relinquish all management rights in connection with Hulu.com, a popular video website; and prohibits Comcast from retaliating against content providers who sell to online distributors, entering into exclusive agreements that might limit access to programs, and slowing broadband signals when broadband customers view non-Comcast content.

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U.S. and Plaintiff States v. Verizon Communications, Inc., No. 08-cv-01878 (D.D.C. 2008)

October 9, 2020

USDOJ and plaintiff states filed suit to stop the acquisition of Alltel Corp. by Verizon Communications Corp. Verizon agreed to divest assets in 100 areas in 22 states in order to proceed with the acquisition.

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Missouri v. AU Optronics Corp., (N.D. Cal. pending transfer to MDL 1827, 2010)

October 9, 2020

Following guilty pleas to criminal price-fixing by several LCD manufacturers, and a conviction after trial of another, plaintiff states filed suit against LCD manufacturers, alleging that top executives of several companies held numerous secret meetings from at least 1999 through at least 2006 for the purpose of exchanging information and setting prices on LCD panels. According to the complaint, companies such as Dell, Apple, and Hewlett Packard were among those targeted by the manufacturers’ price-fixing scheme. According to the lawsuit, the illegal overcharges were ultimately borne by state consumers and state government purchasers. The suit also alleges fraudulent concealment of the conspiracy. The lawsuit seeks monetary damages, civil penalties and injunctive relief under the Sherman Act and state antitrust statutes. The first settlement covered Chimei Innolux, Chimei Optoelectronics, Hannstar, Hitachi, Samsung, and Sharp and their subsidiaries. The second settlement, for $543.5 million, was with AU Optronics, Toshiba and LG Display and subsidiaries.

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