Class Settlement Flaw Exposed in Case Over Smart Phone Batteries

U.S. consumers in about half the states are precluded from sharing the proceeds of certain class action antitrust settlements, and some competition lawyers — including the Justice Department’s antitrust chief Makan Delrahim — think that needs to change.

For example, a hypothetical consumer in Louisiana who overpaid for a laptop because of an illegal battery cartel can’t sue for damages because she didn’t buy the battery directly from a manufacturer that fixed the prices. All the consumer did was purchase a computer that contains the high-priced battery from a retailer, and federal antitrust law doesn’t allow “indirect” buyers like her ...