Supreme Court Rules that IPO Litigation is Immune from Antitrust Scrutiny
This memo addresses the U.S. Supreme Court's ruling in Credit Suisse First Boston v. Glen Billing. There the Court ruled that no antitrust liability could arise from: (1) "laddering" agreements whereby investors were required to promise to place above the IPO price; (2) "tying" arrangements whereby investors commit to purchase other, less attractive securities; and (3) other allegedly excessive commissions, including for the purchase of an issuer's shares in follow-up or secondary public offerings (for which the underwriters would earn underwriting discounts). The Court held that the securities laws impliedly preclude the application of the antitrust laws to such conduct.