Bertelsmann, Time Warner Escape Digital Music MDL

Law360, New York (July 19, 2011, 2:34 PM EDT) -- A New York federal court dismissed all claims Monday against Bertelsmann Inc., Time Warner Inc. and Sony Corp. of America in a multidistrict class action alleging a conspiracy to raise digital music prices, ruling the plaintiffs can only target the companies' subsidiaries.

U.S. District Judge Loretta A. Preska found that the three companies were sufficiently separate from their music units, and ruled that the plaintiffs had not alleged circumstances that would allow the court to pierce the parent companies' corporate veils.

"The complaint contains no allegations...
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