Judge Won’t Decertify iTunes Antitrust Class Action Lawsuit

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On Nov. 17, a California federal judge denied Apple Inc.’s motion to decertify a Class of iPod resellers, ruling that it would not be fair to decertify the iTunes antitrust Class so close to the class action lawsuit’s trial date.

The iTunes antitrust class action lawsuit, set to go to trial on Dec. 2, alleges the tech giant monopolized the digital music market through its iPod products and iTunes software. Since 2007, the cases in litigation for this iTunes antitrust lawsuit were consolidated and similarly seek unspecified damages for iPod products sold from 2006 to 2009. According to the plaintiffs’ claims, these iPods were installed with iTunes software that prevented the Apple products from playing music bought from Apple’s competitors.

U.S. District Judge Yvonne Gonzalez Rodgers decided it would put potential Class Members at a “disservice” if she were to grant Apple’s motion and decertify the Class of direct purchasers represented in this iTunes class action lawsuit.

Judge Gonzalez Rodgers also rejected the plaintiffs’ motion to designate retail store owner Kenneth Riegel as the Class representative, finding that Riegel didn’t have standing to represent a Class of direct buyers when K&N enterprises, the parent company of Riegel’s shop, is currently in default.

The Class’ legal representatives disagree with the judge’s ruling, arguing K&N is technically considered a void company, but is not wholly dissolved. Void companies can still have rights to certain legal capacities and according to Delaware law, a void company like K&N can still participate in cases like the iTunes antitrust class action lawsuit.

Apple’s attorney fired back that since Riegel’s parent company stopped paying franchise taxes, then K&N’s business charter becomes void, which then disqualifies the company from participating in any lawsuit.

In its motion for summary judgment regarding this antitrust class action lawsuit, Apple also urged Judge Gonzalez Rodgers to bar plaintiff Riegel from testifying at the forthcoming trial. However, the judge will allow Riegel testify, albeit it in a limited capacity, because he holds useful information for the jury.

This is not the first time Apple has attempted to keep the plaintiffs’ expert witnesses from testifying during the iTunes trial. In September, Apple attempted to exclude expert testimony by economist Dr. Rodger G. Noll, who created a regression model that allegedly demonstrated that if Apple had allowed competing music sites’ songs, like Real Media, onto user’s iPods, then the overall price per song on the digital music market would have been lower.

Additionally in mid-August, Apple submitted a motion to dismiss the iTunes Antitrust class action lawsuit claiming the plaintiff’s allegations are not based on facts and figures, but rather broad suppositions.

The plaintiffs are represented by Alexandra Senya Bernay, Bonny E. Sweeney, Carmen A. Medici and others at Robbins Geller Rudman & Dowd LLP.

The iTunes Antitrust Class Action Lawsuit is In re: The Apple iPod iTunes Antitrust Litigation, Case No. 4:05-cv-00037, in the U.S. District Court for the Northern District of California.

UPDATE: On Dec. 16, 2014, a jury handed down a verdict in favor of Apple in the iTunes antitrust trial, finding that the software upgrade was a genuine product improvement and was not intended to stifle competition.