7th Circ. Blisters Sears Shareholders' Antitrust Suit

Law360, New York (June 13, 2012, 8:28 PM EDT) -- The Seventh Circuit on Wednesday slammed a shareholder derivative suit accusing two Sears Holdings directors of violating antitrust laws by sitting on the boards of competitors, deeming the case "so feeble that it is best to end it immediately."

The panel ruled that a shareholder suit was an improper vehicle for antitrust allegations, since antitrust laws were meant to protect consumers, not investors — and moreover, that neither group actually had been harmed.

In addition, apart from basing their complaint on the faulty premise that close...
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