Court sides with Street in IPO antitrust

The Supreme Court sided with several powerhouse firms today, putting the breaks on an antitrust lawsuit.

The Supreme Court sided with several Wall Street powerhouse firms today and put the breaks on an antitrust lawsuit which alleged that they conspired to drive up prices on 900 new IPOs.
In a 7-1 decision, the justices reversed a federal appeals court decision that had enabled investors to sue for anti-competitive practices.
The suit accused the firms of illegally inflating prices on IPOs and profit margins during the technology bubble of the late 1990s.
In an opinion written by Justice Stephen Breyer, The Supreme Court ruled that federal securities regulation prevents the suit.
“We must interpret the securities laws as implicitly precluding the application of the antitrust laws to the conduct alleged in this case,” Justice Breyer said.
Under federal antitrust laws, the companies could have faced tripled damages if the lawsuit was allowed.
The decision reverses a ruling by the 2nd U.S. Circuit Court of Appeals.
Some of the firms named included Credit Suisse Group, Bear Stearns Cos., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Morgan Stanley.
Justice Clarence Thomas was the lone dissenter.
Justice Anthony Kennedy didn’t vote on the case.