U.S. Supreme Court Decision Regarding IPO's Holds Securities Laws Preclude Antitrust Laws

On June 21, 2007, the Washington office authored an Alert entitled, “U.S. Supreme Court Decision Regarding IPO’s Holds Securities Laws Preclude Antitrust Laws.” This Alert Memorandum discusses a June 18, 2007 U.S. Supreme Court decision that has given investment banks broad protection against antitrust claims for initial public offering (“IPO”) underwriting activities regulated under the federal securities laws. The 7-1 decision overturns an earlier decision by the U.S. Court of Appeals for the Second Circuit that previously allowed the antitrust claims to proceed. In eliminating the possibility of antitrust liability for underwriting activities, the decision is a clear victory for IPO underwriters.