Antitrust Law Daily Wrap Up, ANTITRUST—J.P.M.L.: Consumers' and competitors' monopoly suits against Keurig consolidated for pre-trial proceedings, (Jun 5, 2014)

By Jeffrey May, J.D.

The Judicial Panel on Multidistrict Litigation (JPML) has consolidated eight antitrust actions pending around the country against Keurig Green Mountain, Inc. in the federal district court in New York City for pretrial proceedings (In re Keurig Green Mountain Single-Serve Coffee Antitrust Litigation, June 3, 2014, Rendell, M.).

Despite some individualized factual issues, the actions—including direct purchaser and indirect purchaser class actions, as well as individual actions brought by competitors of the Keurig Green Mountain companies—raised common questions concerning the conduct of Keurig Green Mountain and its predecessors in allegedly monopolizing the market for single-serve coffee cups used in Keurig brewing machines, the JPML explained. The defendants’ alleged anticompetitive conduct included the acquisition of competitors, exclusionary agreements with suppliers and distributors to prevent competitors from entering the market, and sham patent infringement litigation. In addition, most of the complaints challenged the defendant’s alleged planned introduction of a product redesign to allegedly “lock-out” competitors’ products. The redesign is the subject of the motion for preliminary injunction and other anticipated expedited proceedings in the competitor actions.

Although the complaining competitors opposed centralization of their actions, the transfer of the actions outside of the Southern District of New York to that forum would serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation. Centralization would eliminate duplicative discovery; prevent inconsistent pretrial rulings; and conserve the resources of the parties, their counsel and the judiciary, according to the JPML.

Just last month, the federal district court in Sacramento, California, stayed an action against Keurig brought by JBR, Inc., a seller of gourmet coffee products, including individual portion packs for single serve coffee brewers-- pending a transfer decision by the JPML. That action is among those transferred to the federal district court in New York City.

The case is MDL No. 2542.

Attorneys: Daniel Johnson, Jr. (Morgan Lewis and Bockius LLP) for JBR, Inc. Courtney Jack Linn (Orrick, Herrington & Sutcliffe LLP), George Stephen Cary (Cleary Gottlieb Steen & Hamilton LLP), and Geoffrey Graham Grivner (Buchanan Ingersoll & Rooney PC) for Keurig Green Mountain, Inc.

Companies: Keurig Green Mountain, Inc.; JBR, Inc.

Cases: Antitrust