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    Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Sterling alleges $1 billion in damages due to forced sale of Los Angeles Clippers NBA franchise, (Jun 2, 2014)

    Law Firms Mentioned:Blecher Collins Pepperman & Joye, PC | Samini Scheinberg, PC
    Organizations Mentioned:Blecher & Collins | National Basketball Assn.

    By Edward L. Puzzo, J.D.

    Los Angeles Clippers owner Donald Sterling has filed a $1 billion lawsuit in the federal district court of Los Angeles against the National Basketball Association (NBA), alleging that the forced sale of the franchise ordered by the NBA would be the r ...

    By Edward L. Puzzo, J.D.

    Los Angeles Clippers owner Donald Sterling has filed a $1 billion lawsuit in the federal district court of Los Angeles against the National Basketball Association (NBA), alleging that the forced sale of the franchise ordered by the NBA would be the result of an antitrust conspiracy (Sterling v. National Basketball Association, May 30, 2014).

    Donald Sterling, whose family trust owns the Los Angeles Clippers NBA franchise, has filed suit against the National Basketball Association and its commissioner Adam Silver, following the NBA's recent actions to bar him from the league and force him to sell the franchise.

    The lawsuit alleges, among other claims, that the NBA owners conspired to force a sale of the Clippers in violation of the antitrust laws. Sterling alleges that the forced sale process compromises the competitive process for acquiring club ownership, and involves "the unfettered subjective discretion of Sterling's direct competitors who each stand to gain financially from Sterling's exclusion from the market." Sterling claims that the forced sale would produce a lower price than a non-forced sale, and create antitrust injury by making the relevant market unresponsive to consumer preference and the operation of the free market.

    The complaint alleges that the forced sale would create damages of at least $1 billion, before trebling, based on the loss of all future value of the Los Angeles Clippers franchise value, capital gains taxes, and increased investment-banking, legal and transaction costs.

    Sterling asserts claims for breach of contract, conversion, breach of fiduciary duties, and violations of Section 1 of the Sherman Act and the California Constitution. The action seeks injunctive relief, punitive, actual and treble damages, costs of suit, attorney fees, and any other just and proper relief.

    The case is Civil Action No. 2:14-cv-04192-FMO-SH.

    Attorneys: Maxwell M. Blecher (Blecher Collins Pepperman & Joye, PC) and Bobby Samini (Samini Scheinberg, PC) for Donald T. Sterling and the Sterling Family Trust.

    Companies: National Basketball Assn.

    News: Antitrust CaliforniaNews

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