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Zibas and Barrett Obtain Dismissal on Pleadings in First-of-Its-Kind Antitrust Litigation in the Eastern District of New York

May 17, 2021

Jura Zibas (Partner-New York, NY) and Stephen Barrett (Of Counsel-New York, NY) successfully defended an antitrust challenge brought against one of the Internet’s premier ecommerce consulting firms. The plaintiff (1) alleged that in the course of its business, our client made false allegations to a technology provider, causing it to suspend the plaintiff’s storefront and (2) challenged the propriety of our client’s business model by contesting the lawfulness of the client’s distribution agreements with its clients. After successfully shielding the client’s key business documents from disclosure during a period of limited jurisdictional discovery, Jura and Stephen filed an extensive motion to dismiss on the pleadings, arguing, among other things, that the plaintiff’s antitrust claims failed because there was no anticompetitive effect experienced in any properly defined marketplace. Because the plaintiff failed to properly define its proposed relevant market with reference to all interchangeable substitute products and trade channels, the proposed market was found to be legally insufficient under the Sherman Act, and the Complaint was dismissed in its entirety. Plaintiff opted not to appeal, and our client is now free to continue its business without fear of an antitrust challenge.

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