eMag Solutions, LLC. v. Toda Kogyo Corp.

ORDER DENYING MOTION TO DISMISS

Before the court is defendants’ motion to dismiss the third amended complaint. Having read the parties’ papers and carefully considered their arguments, and good cause appearing, the court hereby DENIES the motion.

BACKGROUND

This is an action alleging a world-wide conspiracy to fix the price of magnetic iron oxide (“MIO”), in violation of § 1 of the Sherman Antitrust Act, 15 U.S.C. § 1 . Defendants Toda Kogyo Corporation and Toda America, Inc. seek an order dismissing the claims of the sole remaining plaintiff, eMag Solutions LLC (“eMag USA”), alleged in the third amended complaint (“TAC”). Defendants argue that the claims alleged by eMag USA must be dismissed because plaintiff fails to allege antitrust injury.

The court dismissed the second amended complaint on January 10, 2005, for failure to state a claim. The five original plaintiffs filed the TAC on March 11, 2005, asserting antitrust claims in connection with sales of MIO as U.S. imports, as “purely domestic” commerce, as U.S. exports, and as “purely foreign” commerce. On July 20, 2005, the court dismissed the claims of the foreign plaintiffs, for lack of subject matter jurisdiction under…