2nd Circ. FTAIA Ruling: Some Clarity, Some Unresolved Issues

Law360, New York (June 6, 2014, 3:24 PM EDT) -- Long-simmering issues concerning the applicability of the Sherman Act to foreign conduct under the Foreign Trade Antitrust Improvements Act, 15 U.S.C. § 6a, were addressed in the June 4, 2014, decision of the Second Circuit in Lotes Co. Ltd. v. Hon Hai Precision Industry Co. Ltd, et al., No. 13-2280 (2d Cir. June 4, 2014). Decisive in tone but offering limited guidance for the future, the decision addresses several issues for which there are inconsistent decisions — or at least a lack of consensus — among the courts of appeals and the district courts.

The question of the Sherman Act's extraterritorial...

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