Limits To 'Pass-On' Defense May Up The Ante In Calif.

Law360, New York (July 30, 2010, 6:07 PM EDT) -- A recent decision by the California Supreme Court nixing the ability of defendants to use a "pass-on" defense to limit liability in antitrust suits has solidified the state's status as a preferred venue for plaintiffs, and may lead to more antitrust filings there, antitrust experts say.

On July 12, California's highest court firmly declared in Clayworth v. Pfizer Inc. that the pass-on defense is not available under California law, taking away a key weapon from defendants in price-fixing cases.

“This court has definitely slammed the door...
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