FOR IMMEDIATE RELEASE-December 7, 2006                             Contact: Brendan LaCivita

 

U.S. Chamber Applauds Supreme Court For Granting Review of IPO Antitrust Case

 

WASHINGTON, D.C.-The National Chamber Litigation Center (NCLC) applauded the Supreme Court today for granting review of a case where plaintiffs filed class action lawsuits against leading investment banks for allegedly engaging in anticompetitive conduct while recruiting customers for initial public offerings (IPO). In an amicus brief, NCLC urged review of the case, Credit Suisse First Boston Ltd., et al., v. Glen Billing, et al.

 

"By allowing antitrust class actions to proceed, the lower court ignored two key factors," said Robin Conrad, NCLC Senior Vice President. "First, it failed to recognize that the Securities and Exchange Commission already scrutinizes, monitors, and regulates IPOs. Second, it didn't take into account the damaging effects such class actions would have on the expansion and growth of companies and the creation of jobs." 

 

In its brief, NCLC argued that granting antitrust immunity for actions taken during IPOs enhances businesses' ability to expand. It also noted that the SEC pervasively regulates the IPO process, and that SEC's regulations encourage not only competition but also the creation of capital.      

 

"We urge the Supreme Court to overturn the lower court's ruling, a ruling that compromises the very business practices encouraged by the SEC and threatens capital formation and jobs," said Conrad.  

 

NCLC, the public policy law firm of the U.S. Chamber of Commerce, is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.
 
NCLC

 

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06-186