Second Circuit Addresses Twombly Standard in Reviving Digital Music Conspiracy Suit

The Second Circuit reversed a district court’s dismissal of a case alleging that major record companies had conspired to increase the price of digital music distributed on CDs and over the Internet.  The trial court had found the allegations of conspiracy insufficient under the Twombly standard.  The Second Circuit reversed, explaining that “[t]he present complain succeeds where Twombly’s failed because the complaint alleges specific facts sufficient to plausible suggest that the parallel conduct alleged was the result of an agreement among the defendants.”  The court explained that a plaintiff need not allege sufficient facts to exclude the possibility of “independent self-interested conduct” only enough to suggest an agreement.  The plaintiff is not required to allege the specific time and place of the conspiracy or the particular persons involved.  The court also rejected the argument that the Antitrust Division’s decision not to prosecute is relevant to the decision.

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