Supreme Court Throws Out Case Against Comcast

Before you go, we thought you'd like these...
Before you go close icon

The Supreme Court yesterday threw out a class action lawsuit against Comcast  that had been brought by 2 million current and former Comcast customers citing competition concerns.

A post on the Supreme Court justices' official blog said Justice Antonin Scalia's opinion for the Court "held that the class action in that case had been improperly certified under Rule 23(b)(3). The Third Circuit erred in refusing to decide whether the plaintiff class's proposed damages model could show damages on a classwide basis. Under proper standards, the model was inadequate and the class should not have been certified."

The Court's opinion said the plaintiffs were suing Comcast for creating a monopoly by  buying up smaller cable operations in the Philadelphia area, and that Comcast then charged customers rates above competitive prices. Comcast's share of customers in the Philadelphia region grew from just under 24% in 1998 to 69.5% in 2007, according to the Court's ruling. 

The ruling said, "The first step in a dam­ages study is the translation of the legal theory of the harmful event into an analysis of the economic impact of that event. The District Court and the Court of Appeals ignored that first step entirely." The vote was 5-4 with Justices Breyer and Ginsburg writing a joint dissent, and Justices Sotomayor and Kagan joining.

The article Supreme Court Throws Out Case Against Comcast originally appeared on

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading