The Pass-On Defense In Calif. Price-Fixing Cases

Law360, New York (August 27, 2008, 12:00 AM EDT) -- The California Court of Appeal for the 1st Appellate District recently ruled in a case of first impression that defendants accused of price-fixing may assert as an affirmative defense that the plaintiffs “passed on” all of the claimed overcharges to their customers. Clayworth v. Pfizer Inc. 08 C.D.O.S. 9697 (July 25, 2008).

The ruling is especially significant for companies targeted in price-fixing cases whose products are sold through intermediaries.

A Brief History Of The Pass-On Defense And California Antitrust Law

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