Spectrum Stores Inc., et al. v CITGO Petroleum Corporation, et al.

Case Updates

Citing NCLC's amicus brief, the Fifth Circuit affirmed the dismissal of antitrust class action lawsuits brought against the petroleum companies. The court held that the lawsuits are barred by the act of state doctrine and are non-justiciable under the political question doctrine.

NCLC urged the Fifth Circuit to hold that a series of antitrust class action lawsuits brought against foreign state-owned petroleum companies are barred by the act of state doctrine and are non-justiciable under the political question doctrine. The plaintiffs - U.S. companies that purchase gasoline from the defendants- allege that certain foreign state-owned petroleum companies conspired with OPEC to fix gasoline prices in violation of U.S. antitrust laws. In its brief, NCLC argued that the case is likely to affect U.S. foreign policy and therefore the political branches, not the judiciary, have the institutional competence to resolve concerns regarding oil production. NCLC also cautioned that allowing this lawsuit to proceed could seriously damage American business interests at home and abroad, at a time when the U.S. economy is already in crisis. Also, exposure to litigation in American courts might encourage OPEC members to pull their investments from U.S. markets; in fact, the plaintiffs expressly suggested that OPEC members divest themselves of their interests in American markets