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May 22, 2007

Supreme Court addresses antitrust pleading rules in Twombly

Monday's antitrust ruling from the U.S. Supreme Court makes it easier for courts to toss out cases at the pleading stage.  Litigators know that, under federal "notice pleading" standards, a complaint need not include an extensive recital of facts; a pleading that simply puts defendant on notice of the nature of the claims is sufficient.  Bell Atlantic Corp. v. Twombly appears to impose a different standard for pleading a Sherman Act Section 1 combination in restraint of trade.  It states that plaintiff must plead enough facts to plausibly suggest an actual unlawful agreement between the defendants.  Such a standard is necessary, according to Justice Souter, to avoid expensive discovery on a claim that lacks merit.

Like the Weyerhaeuser case decided earlier this term, Twombly makes the road that much rougher for antitrust plaintiffs.   

See other law blog coverage of the case here and here.

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