Antitrust Law Daily Wrap Up, ANTITRUST—S.D.N.Y.: “Mundane” E-Trade complaint failed to allege antitrust injury, (Aug 15, 2014)

By Greg Hammond, J.D.

Despite allegations of government conspiracies, death threats, imprisonment, and being framed by the NSA in motion papers, a pro se litigant failed to allege “far more mundane” facts of antitrust injury in his complaint. In granting 13 financial services companies’ motion to dismiss the litigant’s claims—which resulted from multiple securities and futures trading account application denials, the federal district court in New York City determined that refusing an individual consumer’s business is not anticompetitive (McCrudden v. E-Trade Financial Corp., August 12, 2014, Pauley, W.).

Background. Vincent McCrudden attempted to open securities or futures trading accounts with 13 different financial services companies in 2013. According to the court, companies that did not deny his application closed his accounts quickly after opening them. McCrudden was frequently not told why his accounts were closed. However, the court noted that McCrudden pleaded guilty to threatening officials at various financial regulatory organizations in 2012, and served 28 months in federal prison. He filed suit, alleging—in part—violations of sections 1 and 2 of the Sherman Act.

Sherman Act claims. To state a valid claim under the Sherman Act, according to the court, McCrudden was required to allege “an injury of the type the antitrust laws were intended to prevent and that flows from that which makes the defendants’ acts unlawful.” However, the court concluded that refusing an individual customer’s business is not anticompetitive, as antitrust laws were created for the protection of competition, not single market participants. Because McCrudden did not suffer an antitrust injury, the court concluded that he lacked standing, and the case was dismissed with prejudice.

The case number is 13cv8837.

Attorneys: Vincent Patrick McCrudden, pro se. Eric Rieder (Bryan Cave LLP) for E Trade Financial Corp. Steven R. Goldberg for MBF Clearing. Mauricio Salvador Beugelmans for Option Express, Inc. Marsha Jessica Indych (Drinker Biddle & Reath, LLP) for Lightspeed. Terence Joseph Gallagher (Jones Morrison LLP) for AMP Global Clearing, LLC.

Companies: E Trade Financial Corp.; MBF Clearing; Option Express, Inc.; Lightspeed; AMP Global Clearing, LLC

Cases: Antitrust NewYorkNews