Court Says No To Treble Damages In Class Actions

Law360, New York (February 22, 2007, 12:00 AM EST) -- Treble damages can be considered penalties, and therefore cannot be sought in antitrust class actions, New York State’s highest court found on Thursday.

The case before the state court of appeals centered on whether New York’s General Business Law, known as the Donnelly Act, allows class actions to seek threefold damages, or if such damages are barred by the CPLR 901 (b) law.

CPLR 901 (b) bars classes in class action suits from collecting penalties, unless a previous statute authorizes the group to do so. The...
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