Drs. Johnson and David Discuss Antitrust Class Certification in Labor Markets

Washington, D.C. - In the current issue of the American Bar Association’s Antitrust Magazine, Edgeworth President John H. Johnson and Senior Vice President Jesse David, along with economist Paul Torelli, discuss the unique circumstances surrounding antitrust cases that target labor markets. The authors explain “as with cases of alleged price fixing or monopolization in output markets, the victims of allegedly anticompetitive labor practices can assert class action claims to seek damages and injunctive relief under antitrust laws. Compared to output markets, however, labor markets exhibit distinct features that present a variety of obstacles for plaintiffs in meeting the requirements for class certification. In this article, we analyze some of the key features of labor markets that complicate the economic analysis required for class certification in antitrust cases, focusing on recent class actions that illustrate three types of antitrust  allegations: agreements not to compete, information exchanges, and ‘naked’ wage-setting agreements. We review the economic framework offered by plaintiffs in these cases and explain how labor markets present unique obstacles to classwide adjudication of these antitrust claims.” Please contact us for a copy of the full article.