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In re Titanium Dioxide Antitrust Litigation
284 F.R.D. 328
D. Maryland
2012
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Background

  • This case concerns an alleged price-fixing conspiracy in the titanium dioxide market, involving plaintiffs Haley Paint, Isaac Industries, and East Coast Colorants (Bre en Color Concentrates) against DuPont, Huntsman, Kronos, and Millennium.
  • Defendants allegedly controlled about 70% of global TiO2 capacity and the market is highly centralized with high entry barriers.
  • TiO2 is a widely used white pigment with inelastic demand; plaintiffs allege declining market conditions preceded a cartel beginning in 2002 to raise prices.
  • The class period runs from February 1, 2003 to the present, with prices purportedly increasing and defendants earning billions.
  • Plaintiffs moved to certify a class under Rule 23(b)(3); the court held a full certification hearing and granted certification.
  • The court analyzed market structure and expert evidence (Dr. Lamb for plaintiffs; Dr. Burtis for defendants) to determine common proof of class-wide impact and damages.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the class satisfies Rule 23(a) numerosity Plaintiffs: numerosity met (700+ purchasers, potentially thousands) Defendants: contest numerosity Numerosity satisfied under Rule 23(a)(1)
Whether common questions predominate under Rule 23(b)(3) Plaintiffs: conspiracy existence and impact are common to all members Defendants: rely on individualized impact/damages proof Common questions predominate; conspiracy existence is a class-wide issue
Whether typicality and adequacy of representation are satisfied Plaintiffs: named plaintiffs share injury (overcharge) and aims with class Defendants: assert dissimilarities and conflicts among named plaintiffs Typicality and adequacy satisfied under Rule 23(a)(3)-(4)
Whether damages can be proven on a class-wide basis Plaintiffs: regression and other common methods can show class-wide overcharge Defendants: damages must be individualized Damages capable of class-wide proof via regression and other common methods; individual damages may require future procedural approaches
Whether a class action is a superior method for adjudication Plaintiffs: class treatment efficient given common issues Defendants: no specific superiority argument beyond adequacy of common issues Class action is superior under Rule 23(b)(3)

Key Cases Cited

  • Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (U.S. Supreme Court 2011) (rigorous analysis required for class certification; commonality and predominance principles)
  • Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (U.S. Supreme Court 1997) (complex class actions require rigorous Rule 23 analysis)
  • Gen. Tel. Co. of the Sw. v. Falcon, 457 U.S. 147 (U.S. Supreme Court 1982) (pre-Rule 23 analysis guidance on certification)
  • Thorn v. Jefferson-Pilot Life Ins. Co., 445 F.3d 311 (4th Cir. 2006) (Rule 23 analysis and predominance considerations)
  • Gunnells v. Healthplan Servs., Inc., 348 F.3d 429 (4th Cir. 2003) (necessity of rigorous analysis in class certification; potential issues of representation)
  • In re Hydrogen Peroxide Antitrust Litig., 552 F.3d 305 (3d Cir. 2008) (rigorous common-questions analysis for class certification; expert disputes)
  • Deiter v. Microsoft Corp., 436 F.3d 461 (4th Cir. 2006) (typicality and commonality considerations in antitrust class actions)
  • In re EPDM Antitrust Litig., 256 F.R.D. 82 (D. Conn. 2009) (class-wide proof feasible for impact and damages)
  • In re Rail Freight Antitrust Litig., — F.R.D.— (D.D.C. 2012) (class-wide injury proof methods; consideration of common vs. individual issues)
  • Texaco, Inc. v. Dagher, 547 U.S. 1 (U.S. Supreme Court 2006) (per se Sherman Act violation for price-fixing)
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Case Details

Case Name: In re Titanium Dioxide Antitrust Litigation
Court Name: District Court, D. Maryland
Date Published: Aug 28, 2012
Citation: 284 F.R.D. 328
Docket Number: Civil Action No. RDB -10-0318
Court Abbreviation: D. Maryland