Credit Suisse Securities (USA) LLC, Fka Credit Suisse First Boston LLC, et al. v. Glen Billing et al. (551 U.S. 264)

U.S. Supreme Court · decided June 18, 2007 · Supreme Court Database (Spaeth)

Citation
551 U.S. 264 · 127 S. Ct. 2383
Decided
June 18, 2007
Term
October Term 2006
Vote
7–1
Majority author
Justice Breyer
Issue area
Economic Activity
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Justice Breyer delivered the opinion of the Court. A group of buyers of newly issued securities have filed an antitrust lawsuit against underwriting firms that market and distribute those issues. The buyers claim that the underwriters unlawfully agreed with one another that they would not sell shares of a popular new issue to a buyer unless that buyer committed (1) to buy additional shares of that security later at escalating prices (a practice called “laddering”), (2) to pay unusually high commissions on subsequent security purchases from the underwriters, or (3) to purchase from the underwriters other less desirable securities (a practice called “tying”). The question before us is whether there is a “‘plain repugnancy’” between these antitrust claims and the federal securities law. See Gordon v. New York Stock Exchange, Inc., 422 U. S. 659, 682 (1975) (quoting United States v. Philadelphia Nat. Bank, 374 U. S. 321, 350-351 (1963)). We conclude that there is. Consequently we must interpret the securities laws as implicitly precluding the application of the antitrust laws to the conduct alleged in this case. See 422 U. S., at 682, 689, 691; see also United States v. National Assn. of Securities Dealers, Inc., 422 U. S. 694 (1975) (NASD); Silver v. New York Stock Exchange, 373 U. S. 341 (1963). I A The underwriting practices at issue take place during the course of an initial…

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