In re Titanium Dioxide Antitrust Litigation
284 F.R.D. 328
D. Maryland2012Background
- 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)
