0.2: Double Header
THIS WEEK: Players and states go head-to-head with the NCAA, a big verdict from some bad eggs, and almost every music record label you've ever heard of is going after Altice.
Double Header
The National Collegiate Athletics Association’s lawyers have a lot to tackle. Earlier today, two lawsuits were filed against the NCAA. One, a class action by a number of players, fights the restrictions on paying student athletes by universities. The other, brought by multiple states, addresses the transfer eligibility rule (the one year delay in the eligibility of certain college athletes transferring between NCAA member institutions).
Player Lawsuit
State Lawsuit
Both lawsuits share a common message: the NCAA rules at issue are anti-competitive and violations of antitrust laws. While we can’t speak to the merits of the cases, we can say that we greatly appreciate this dig at former Texas A&M football coach Jimbo Fisher:
A Few Bad Eggs
It was out of the frying pan and into the fire for several prominent egg producers accused of price gouging in federal court last week. After a trial, a federal jury in the Northern District of Illinois awarded the food manufacturer plaintiffs $17.7 million – increased to ~$53 million thanks to federal antitrust (bit of a theme this week) treble damage eligibility – against a group egg suppliers for conspiring to increase egg prices in the U.S. from 2004 - 2008.
The jury wasn’t yolking when they found that egg producers, including Cal-Maine Goods, United Egg Producers, United States Egg Marketers, and Rose Acre Farms conspired to keep domestic prices high by exporting eggs, limiting cage space, early slaughter, and flock reduction.
Comments from defense counsel following the verdict indicate that they will be scrambling to appeal. I know what you’re thinking – is this happening now? Well, the jury was specifically instructed not to consider current egg prices (which have soared above $8+ in NYC).
Here’s an eggstra layer of intrigue. The former chairman of Rose Acre Farms, John Rust, is running, for U.S. Senate in Indiana seemed a bit shell-shocked following the verdict. In his statement, he took the opportunity to attack his opponent, U.S. Rep. Jim Banks, stating that Banks has chosen "mega corporations over the American farmer" in the aftermath of the jury's ruling. Rose Acre Farms identifies itself as the second largest egg producer in the U.S. and reported $608.7 million in revenue in 2022 according to Zippia. What does this verdict mean for you the consumer? A big egg. Zero. Nada. The food manufacturer plaintiffs included Kraft, Kellogg, General Mills, and Nestle. This wasn’t a win for the real little guy who footed the bill at the local supermarket.
Joke Break
Record Scratch
Warner Bros., Sony, and just about every record label I’ve ever heard of is going after Altice/CSC Holdings in a massive case about music piracy.
Here is what allegedly happened: Altice (you probably know them as Optimum) provides high-speed internet to almost 5 million customers across 21 states. Customers enjoy music and use their high-speed internet to download it.
Are the ways some of the customers downloaded the music less than legal? Yea.
So lots of copyright infringement? Yea.
Did Altice receive nearly 70,000 copyright infringement notices? Yea.
Did Altice stop these customers when put on notice? Ye…wait no.
As a result, an orchestra of companies are playing a really, really, expensive song to Altice. Probably sounds a little familiar.
Couple 0.1s
What’s going on with George Mason School of Law?
Somewhere, an old sports fan is yelling at a cloud because of this news. The charity organization, Kars4Kids, is continuing its weird penchant for being embroiled in controversy in its $10 million trademark battle with Cars for Kids.
In a busy week for the U.S. Supreme Court, the Justices seem torn over the Purdue Pharma Settlement.