Reuters: Regulatory News: UPDATE 1-U.S. justices decline to hear Eaton Corp antitrust case

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UPDATE 1-U.S. justices decline to hear Eaton Corp antitrust case Apr 29th 2013, 15:00 Mon Apr 29, 2013 11:00am EDT * Z.F. Meritor made claims on heavy truck transmissions * Eaton sought Supreme Court By Lawrence Hurley WASHINGTON, April 29 (Reuters) - The U.S. Supreme Court on Monday left intact a jury verdict against Eaton Corp Plc by declining to hear the company's appeal of antitrust claims made by a rival over the sale of heavy-truck transmissions. Z.F. Meritor, a joint venture of Meritor Inc, indirect subsidiary Meritor Transmission Corp and Z.F. Friedrichshafen AG, had said Eaton violated antitrust laws via its exclusive deals with truck manufacturers. In its claims, Z.F. Meritor focused on long-term arrangements Eaton had with four truck manufacturers in North America: Freightliner, International Truck and Engine Corp, PACCAR Inc and Volvo Group. The deals included rebate provisions that allowed the manufacturers to recoup some money if they bought enough of Eaton's products. The agreements also required the manufacturers to price Eaton's transmissions more favorably than Meritor's when both options were made available to purchasers. A jury in Delaware federal court ruled against Eaton. A three-judge panel of the 3rd U.S. Circuit Court of Appeals in Philadelphia upheld the finding on a 2-1 vote. Eaton sought Supreme Court review, arguing that Meritor had failed to show the deals led to the products being sold below cost, a key way of establishing antitrust liability. Judge Morton Greenberg, the dissenting 3rd Circuit judge, wrote in his opinion that Meritor had neither alleged nor proved that Eaton engaged in below-cost pricing. Meritor said it was not required to make that claim in order to prove that Eaton was violating antitrust laws. Meritor's stock rose 6 percent to $4.79 and shares of Eaton were 4 percent higher at $60.82. The case is Eaton Corp v. Z.F. Meritor, U.S. Supreme Court, No. 12-1045. Link this Share this Digg this Email Reprints

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