Just over a year ago, in July 2010, the California Supreme Court held in Clayworth v. Pfizer that the pass-on defense does not apply to claims under California’s antitrust statute, the Cartwright Act. The decision drew great attention, not just because it involved a question of first impression, but because, as explained in this article, the California Court created an exception to the rule that could have wide-ranging effects on the actual use of the pass-on defense and the scope of discovery available in multi-party complex antitrust suits brought under the Cartwright Act.
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