F. Hoffmann-LaRoche, Ltd. v. Empagran S.A.
Empagran S.A., based in Ecuador, and other foreign companies filed suit in federal district court against F. Hoffman-LaRoche, a Swiss company, and approximately twenty other foreign companies, for an alleged price-fixing conspiracy. The suit followed a settlement between the U.S. government and the “Vitamin Cartel,” which included F. Hoffman-LaRoche, for a global vitamin price-fixing conspiracy scheme. None of the price-fixing or vitamin purchases alleged in Empagran’s case occurred in the United States; all the alleged illegal activity occurred overseas. Empagran sued under the U.S. Foreign Trade Antitrust Improvement Act (FTAIA), an amendment to the Sherman Antitrust Act, the Sherman Act, the Clayton Act, the antitrust laws of foreign nations, and international law. F. Hoffman-LaRoche moved to dismiss, asserting that the court lacked subject matter jurisdiction under the federal antitrust laws, because the injuries plaintiffs sought to redress were sustained in transactions that lack any direct connection to United States commerce. The district court granted the motion, and the Court of Appeals for the District of Columbia reversed. The Court of Appeals held that, where the anticompetitive conduct has harmed United States commerce, FTAIA permits suits by foreign plaintiffs who are injured solely by that conduct's effect on foreign commerce. The anticompetitive conduct itself must violate the Sherman Act and the conduct's harmful effect on United States commerce must give rise to "a claim" by someone, even if not the foreign plaintiff who is before the court. The court further held that Empagran had standing to sue under the Clayton Act.
Questions Presented:
1. Whether under the Foreign Trade Antitrust Improvements Act of 1982 (FTAIA), 15 U.S.C. § 6a, the Sherman Act applies to claims of foreign plaintiffs whose injuries do not arise from the effects
of antitrust violations on United States commerce.
2. Whether such foreign plaintiffs lack antitrust standing under Section 4 of the Clayton Act, 15 U.S.C. § 15(a).
