A recent class action lawsuit filed against Verizon Communications Inc., AT&T Inc. and Qwest has been thrown out by the Supreme Court in a move that overturned a 50 year old precedent. The court, in a 7-2 decision rejected the class action brought forth on behalf of customers of this trio of telecoms.

The antitrust suit alleged an illegal agreement between the companies that they would not compete against each other in their respective home areas. The court's decision highlighted the lack of enough "factual matter" to validate allegations of conspiracy made by plaintiffs in the case and the court also cited concerns over making the companies pay for a costly defense.

Formerly, dismissal at such an early stage would only have been permitted when "no set of facts" would entitle the plaintiff to win the case. The newly announced decision breaks with decades of precedent. Welcome to the new Supreme Court...it is going to be a bad time for the plaintiff's bar.

Read more about the case, Bell Atlantic v. Twombly, including comments from dissenting Justice John Paul Stevens, via the Asbury Park Press.

-- MDT

Labels: antitrust, Supremet Court