US Supreme Court Urged To Toss Out Antitrust Suit Vs Bankers January 23, 2007Posted by notapundit in Judiciary, US News.
By Robert Schroeder
The U.S. Chamber of Commerce urged the Supreme Court on Tuesday to throw out a lower court’s ruling against investment banks, saying an antitrust suit against them shouldn’t be allowed to go forward.
In March, the high court is set to hear a case involving Credit Suisse Group (CS) and other banks that are accused of anticompetitive tactics in drumming up their business in underwriting initial public offerings.
The Chamber of Commerce says banks should have immunity from antitrust laws while carrying out IPOs, adding that the Securities and Exchange Commission strongly regulates the IPO process.
“Allowing this lawsuit to continue will result in uncertainty and increased risk for everyone who participates in the process of capital formulation – including millions of investors,” said Robin Conrad, senior vice president of the National Chamber Litigation Center, in a statement.
In the case at issue, a class-action suit charges that Credit Suisse and other investment banks manipulated technology company IPOs in the 1990s, in violation of antitrust law. The plaintiffs objected to the way the banks shared information during the offering periods.
In a court filing, the Justice Department and the Federal Trade Commission recommended the Supreme Court send the case back to a lower court for further study.
Oral arguments are set for March 27 at the Supreme Court.