WGA Sees Judge Dismiss Antitrust Claims Against Big 3 Agencies; Price-Fixing, Breach Claims Remain
’s antitrust lawsuit against Hollywood’s Big 3 talent agencies, but will allow other aspects of its case to proceed to trial. In a ruling handed down Monday, U.S. District Court Judge Andre Birotte Jr. ruled that the WGA:2. Lacks organizational standing to bring claims for breach of fiduciary duty and constructive fraud on behalf of their members.
3. Lacks Article III standing to bring an Unfair Competition Law cause of action on their own behalf.5. And failed to state claims upon which relief can be granted with respect to And that their “group boycott claimsThe judge, however, denied a motion filed by WME, CAA and UTA to dismiss the guild’s Cartwright Act price-fixing claim, and will allow several individual plaintiffs to pursue their claims in court, including:2. Their individual Unfair Competition Law claims.
“In opposition, Counterclaimants do not argue that they buy or sell packages, or that they participate in the talent representation market where packages are bought and sold. Indeed, Counterclaimants’ allegations unambiguously demonstrate that studios—not the Guilds or their writer-members—purchase packages from the Agencies, and that the Agencies and their non-party competitors sell packages to the studios.
“Accordingly, because Counterclaimants’ allegations demonstrate that they neither buy nor sell talent representation services, and that their injuries are entirely derivative of the allegedly higher prices paid by production studios, Counterclaimants have not shown antitrust injury. The Court therefore GRANTS without leave to amend the Agencies’ motion to dismiss Counterclaimants’ first cause of action for per se price-fixing in violation of the Sherman Act.
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