The State Of Umbrella Damages Under Calif. Antitrust Law

County of San Mateo v. CSL suggests umbrella damages for cartel-motivated price raises by non-cartel members possible for state law claims.

October 7, 2014

Law360, New York (October 07, 2014, 10:08 AM ET) -- Several federal courts have held that damages caused when noncartel members raise prices in response to cartel behavior are not recoverable under the Sherman Act. [1] These courts reason that so‐called “umbrella damages” are "unacceptably speculative and complex" because they require inquiry into whether nonconspirators' prices were caused by the cartel or other pricing considerations. Petroleum Products, 691 F.2d at 1340‐41. Applying these principles, at least one court from the Northern District of California has also barred umbrella damages under state antitrust laws.[2]

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