Recorded Music Price-Fixing Suit Reinstated
A U.S. federal appeals court on Wednesday reinstated an antitrust lawsuit against the major record labels over alleged price-fixing of Internet music downloads.
In an order Wednesday, the U.S. Second Circuit Court of Appeals overturned a lower court’s decision dismissing the case, saying an amended consolidated lawsuit in the case stated enough of a factual claim to be allowed to proceed.
“We hold that plaintiffs-appellants’ second consolidated amended complaint contains ‘enough factual matter (taken as true) to suggest that an agreement was made,’ and therefore states a claim,” wrote U.S. Circuit Judge Robert Katzmann in a 25-page opinion.
The three-judge panel didn’t rule on the merits of the claim, only that it was appropriate to proceed at this point.
In its decision, the circuit court vacated an October 2008 ruling by U.S. District Judge Loretta Preska in Manhattan and remanded the case to the district court for further proceedings.
