Summary of Pending Case: McDonough, et al. v. Toys “R” Us d/b/a Babies “R” Us, et al. (E.D. Pa.). The firm represents consumer plaintiffs who paid for certain high-end baby and juvenile products in an antitrust class action against Babies “R” Us and certain baby product manufacturers. Plaintiffs allege that Babies “R” Us, a dominant, multi-brand retailer, conspired with the defendant baby product manufacturers to enter into, maintain, and enforce minimum resale price maintenance agreements with retailers of high-end baby products. The manufacturer-retailer agreements were specifically intended to protect Babies “R” Us from price competition by preventing other retailers, on penalty of termination (i.e., being refused supply), from charging prices that were lower than agreed minimum prices for the baby products. Plaintiffs allege that this scheme to preserve and enhance the monopoly power of Babies “R” Us achieved its goals. As a result of defendants’ anticompetitive conduct, prices were substantially inflated to consumers like Plaintiffs, who paid overcharges for these baby products. The defendants have denied liability.
On July 15, 2009, the court granted Plaintiffs' motion for class certification. Defendants petitioned the Third Circuit Court of Appeals for review of the district court’s certification decision and, on September 3, 2009, the Third Circuit denied Defendants’ petition. Plaintiffs’ motion for leave to file an amended complaint that adds additional named plaintiffs is currently pending before the Court.
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