Class Action Over Calif. Energy Crisis Thwarted

Law360, New York (February 27, 2007, 12:00 AM EST) -- Indirect purchasers in California cannot launch a class action against the wholesale electricity companies accused of distorting the energy market and causing the state’s energy crisis in 2000, a state court of appeals has ruled.

In its opinion, filed Monday, the California Court of Appeals in San Diego said that state court judges must defer to federal courts if the allegations violate national laws.

The class members claim they were affected when the wholesale energy companies allegedly colluded to fix prices, filing the suit under state...
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