Ritz Camera & Image, LLC v. SanDisk Corp.

Good Law

772 F. Supp. 2d 1100·2011 WL 741227·2011 U.S. Dist. LEXIS 18399

United States District Court, Northern District of CaliforniaFebruary 24, 2011Case 5:10-cv-02787-JF/HRLCalifornia5,246 words

Opinion

Fogel, J.

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS FIRST AMENDED COMPLAINT

I. BACKGROUND

On June 25, 2010, Plaintiff Ritz Camera & Image, LLC (“Ritz”) filed the instant action against Defendants SanDisk Corporation (“SanDisk”) and Eliyahou Harari (“Harari”), alleging violations of § 2 of the Sherman Antitrust Act, 15 U.S.C. § 2 (“Sherman Act”). Ritz filed its first amended complaint (“FAC”) as of right on August 25, 2010. On behalf of a purported class, Ritz asserts claims for conspiracy to monopolize and monopolization of the flash memory market. In particular, Ritz alleges that SanDisk and Harari conspired to monopolize and have monopolized the market for NAND flash memory products through the assertion of fraudulent patents. FAC ¶¶ 124-35. Ritz claims that Defendants have reduced competition in the market by pursuing unfounded actions for patent infringement and by engaging in retaliatory conduct toward consumers who use competing products. Id.

Ritz alleges that Harari tortiously converted flash memory technology owned by his former employer Wafer Scale Integration (“WSI”), which led to the issuance of U.S. Patent Nos. 5,172,338 and 5,991,-517, referred to herein…

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