History
  • No items yet
midpage
In Re Text Messaging Antitrust Litigation
630 F.3d 622
| 7th Cir. | 2010
Read the full case

Background

  • Consolidated class action alleging price fixing in text messaging markets under the Sherman Act.
  • District court allowed a second amended complaint despiteTwombly objections, denying dismissal and permitting discovery.
  • Defendants sought interlocutory review under 28 U.S.C. §1292(b); district court granted certification.
  • Seventh Circuit granted interlocutory review, holding Twombly pleading plausibility is a controlling question of law.
  • Second amended complaint alleges 90% market share, trade association conduct, leadership council, pricing structure changes, and uniform price increases.
  • Plaintiffs have not conducted discovery; the ruling allows discovery to assess plausibility of conspiracy.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the second amended complaint plausibly states a price-fixing claim under Twombly Twombly plausibility satisfied by parallel plus allegations Allegations insufficient to show conspiracy Yes; complaint plausibly alleges price fixing
Whether Twombly pleading standard is a controlling question of law for §1292(b) Pleading standard interpretation is controlling Not a pure question of law; factual review needed Yes; it's a controlling question of law for appeal
Whether the district court correctly allowed an interlocutory appeal Immediate review may prevent protracted litigation Appeal premature if not controlling Yes; interlocutory appeal granted

Key Cases Cited

  • Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (pleading plausibility standard; anti-trust context)
  • Ashcroft v. Iqbal, 556 U.S. 662 (2009) (plausibility standard; standard for pleading)
  • Portis v. City of Chicago, 613 F.3d 702 (7th Cir. 2010) (recognizes §1292(b) controlling-question-of-law framework)
  • Armstrong v. LaSalle Bank Nat'l Ass'n, 552 F.3d 613 (7th Cir.2009) (application of Twombly to pleading standards)
  • Pullman-Standard v. Swint, 456 U.S. 273 (1982) (nonrecord-based review; relevance to interlocutory appeals)
Read the full case

Case Details

Case Name: In Re Text Messaging Antitrust Litigation
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Dec 29, 2010
Citation: 630 F.3d 622
Docket Number: 10-8037
Court Abbreviation: 7th Cir.