• Wall Street Can Breathe a Little Easier: U.S. Supreme Court Holds Underwriter IPO Conduct Not Subject to Antitrust Lawsuit
  • June 20, 2007 | Author: Carlos Rainer
  • Law Firm: Fulbright & Jaworski L.L.P. - Houston Office
  • Today, in a much-anticipated decision, the U.S. Supreme Court held in Credit Suisse Securities (USA) L.L.C. v. Billing, No. 05-1157 (June 18, 2007), that the securities laws implicitly preclude application of the antitrust laws to the conduct of underwriting firms during Initial Public Offerings ("IPOs"). The decision reverses a Second Circuit ruling, which had reinstated two class action suits brought by a class of investors against investment banks alleging violations of the antitrust laws. The decision is a significant win for Wall Street. It erects an antitrust safe harbor for IPO syndication and related conduct and may signal that the Court is receptive to broader immunity protection for other conduct in the securities markets.