The following is not meant to be legal advice.
In In re Initial Public Offerings Antitrust Litigation, the Supreme Court is considering the applicability of antitrust law to securities regulations governed by the Securities Exchange Commission (SEC). This case is significant because of the overlap of government regulations.
Glen Billings brought suit against Credit Suisse First Boston and other underwriters. The plaintiffs alleged that the defendants, 10 leading investment banks, conspired to inflate the aftermarket prices of class securities by: (1) using the fixed-price equity underwriting system to create anticompetitive charges, and (2) creating illegal tie-in arrangements that injured the direct purchasers of initial public offering (IPO) shares.
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