In In re: Crop Inputs Antitrust Litigation, No. 24-3104, the Eighth Circuit affirmed the dismissal with prejudice of an antitrust class action alleging that suppliers of seeds, pesticides, and other agricultural inputs conspired to refuse to sell their products to direct-to-consumer e-commerce platforms.  According to plaintiffs, defendants—which included manufacturers, wholesalers, and authorized retailers—agreed to boycott the platforms to prevent the emergence of price transparency, which defendants allegedly feared farmers could use to negotiate lower prices.

Affirming the district court, the Eighth Circuit determined that plaintiffs’ complaint failed for two main reasons.  First, many of plaintiffs’ factual allegations referred to the “Manufacturer,” “Wholesaler,” or “Retailer Defendants” collectively, rather than specifically identifying “who did what, to whom (or with whom), where, and when.”  See D’Augusta v. Am. Petroleum Inst., 117 F.4th 1094, 1104 (9th Cir. 2024).  Those generalized allegations, the Court explained, constituted “impermissible group pleading” that did not “give fair notice to each defendant of the claim being made against it” and therefore could not help the complaint survive a motion to dismiss.  

Second, the Court determined that plaintiffs’ remaining factual allegations failed to plead parallel conduct.  Although plaintiffs had alleged one defendant or another had engaged in various actions in service of the alleged boycott—such as sending a threatening letter or making a false statement to customers—the complaint did not allege that more than one defendant engaged in similar conduct around the same time.  Accordingly, the complaint as a whole failed to plausibly plead that defendants collectively agreed to boycott the e-commerce platforms. 

The Eight Circuit’s decision shows that plaintiffs alleging an antitrust conspiracy must not only specify the relevant acts or omissions committed by each defendant individually, but must also connect each defendant’s behavior to the allegedly parallel actions of the other defendants to plausibly plead an unlawful agreement under the Sherman Act. 

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Maya McCollum Maya McCollum

Maya McCollum is a litigation associate in the firm’s Washington DC office. She is a member of the firm’s Insurance Recovery and Antitrust/Competition Practice Groups.

Maya represents clients in high stakes antitrust and insurance litigation matters as well as government investigations.

Photo of Brandon Gould Brandon Gould

Brandon Gould is special counsel in the firm’s Washington DC office. He is an antitrust and class action litigator who represents clients across multiple industries with extensive experience in the banking, financial services, and technology industries. Brandon is knowledgeable about quantitative economic analysis…

Brandon Gould is special counsel in the firm’s Washington DC office. He is an antitrust and class action litigator who represents clients across multiple industries with extensive experience in the banking, financial services, and technology industries. Brandon is knowledgeable about quantitative economic analysis and experienced with working with economists and other experts in litigation and investigation settings. He also maintains an active pro bono immigration practice that includes both direct representation of asylum seekers and data-driven immigration policy litigation.