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Simpson Thacher Defeats Class Certification in Action Against Major Record Companies

07.27.17

On July 18, 2017, the Firm successfully opposed a motion for class certification in an action brought over a decade ago against the Firm’s client, Warner Music Group, as well as other major record companies, including Sony Music Entertainment and UMG Recordings, Inc. In the operative complaint, plaintiffs alleged that the defendant record companies conspired to fix the wholesale price of digital music downloads sold through Apple’s iTunes Music Store and other online retailers, which constituted violations under the Sherman Act (15 U.S.C. §§ 1, 16) and various state antitrust, unfair competition and consumer protection statutes. In an 89-page decision, U.S. District Court Judge Loretta A. Preska held that plaintiffs, who had sought to certify two separate classes of digital music purchasers, had failed to meet the requirements for class certification set forth in Federal Rule of Civil Procedure 23.

The Simpson Thacher team included Jonathan K. Youngwood and Susannah S. Geltman.