Allegations That Domestic Steel Producers Violated Section 1 Of The Sherman Act Through Reciprocal Calls For "Production Discipline" And Output Reduction Constitute "Plus Factors", .........


Standard Iron Works v. Arcelormittal, N.D. ILL., No. 08 C 5214, June 12, 2009

Plaintiff Standard Iron Works ("Standard") commenced a class action against domestic steel producers, as a direct purchaser of steel products. Standard alleged a multi-year antitrust conspiracy to enhance price levels by the coordinated reduction of industry output of steel products in the United States. According to the complaint, each defendant implemented, and pre-announced, coordinated production cuts through express communications at numerous trade association meetings. The complaint alleged that the statements were made for the express purpose of coordinating production cuts for the purpose of raising the price of steel products. To circumvent the application of Bell Atlantic Corp. v. Twombly, 127 S.Ct. 1955 (2007), plaintiffs alleged that the trade association statements of the need for "discipline" constituted "plus factors" or the "something more" required as "facilitating practices" to transform “interdependent” behavior within a concentrated, fungible product industry into an actionable Sherman 1 violation. See, e.g., Monsanto Co. v. Spray-Rite Serv. Corp., 465 U.S. 752, 768 (1984) and Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574 (1986).

See full blog post for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sheppard Mullin Richter & Hampton LLP | Attorney Advertising

Written by:


Sheppard Mullin Richter & Hampton LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.