Yesterday, I posted on Tuesday's Second Circuit opinion that vacated class certification in the litigation that can only be described as "the IPO cases."  However, those cases have a companion litigation, which I guess can only be described as "the IPO antitrust cases."  In both these cases, plaintiffs allege a vast conspiracy in the IPO market by Wall Street investment banks.  (I analyze this conspiracy in Moral Hazard and the Initial Public Offering.)  One action claims these practices violate securities laws; another action claims the same practices violate antitrust laws.  The Second Circuit slapped down the securities law case Tuesday.  However, a different panel of the Second Circuit revived the antitrust case in September 2005 after that action was dismissed by Judge William H. Pauley III in district court. 

Today, the Supreme Court of the United States granted cert to hear the antitrust case, on appeal from the Second Circuit.  At issue is whether the securities laws that govern these practices preempt antitrust laws from getting in the picture.  (The antitrust claims are grounded in Section 1 of the Sherman Act and Section 2(c) of the Robinson-Patman Act.)  Although the district court ruled that the cause of action was preempted, the Second Circuit disagreed:  "The district court's decision goes too far. The heart of the alleged anticompetitive behavior finds no shelter in the securities laws."  The panel must have known there circuit fairly well!  WSJ story here.

See, people complained today about how the Supreme Court has taken less cases this term than usual, and then the court takes the case I'd prefer it just let alone!

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