Auto Parts Price Discrimination Case Dismissed

Southern District of NY Judge Richard Howell has dismissed, without prejudice, a price discrimination case alleging that major auto-parts manufacturers discriminated in favor of large retailers, Wal-mart and Autozone.  The court dismissed the complaint on the ground that the allegations that the large retailers retail prices were lower than the wholesale price paid by the plaintiffs was insufficient to state a claim.  According to the court, the plaintiffs were required to allege facts showing that those price differences were unjustified.  The court held that alleging facts that could be illegal if other unstated facts exist is insufficient to state a claim.

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