Adaptive Power Solutions, LLC v. Hughes Missile Systems Co.

OVERVIEW

Adaptive Power Solutions, LLC (“APS”), a defense industry subcontractor, sued Hughes Missile Systems Company (“Hughes”) and Raytheon Company (collectively the “defendants”) for allegedly violating section 1 of the Sherman Act and related state law claims. APS alleged that the defendants joined in a concerted refusal to deal with APS to punish APS for attempting to raise prices, which drove APS out of business. The district court granted summary judgment in favor of the defendants on the Sherman Act claim and dismissed the state law claims without prejudice. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

FACTS

Raytheon and Hughes are the only two firms that manufacture advanced medium *949 range air to air missiles (“AMRAAMs”) for sale to the Department of Defense.

In June 1995, the plaintiff APS acquired all of the assets of Sigmapower, Inc. Prior to that acquisition, Sigmapower had manufactured sophisticated electronic equipment, primarily for use in the defense industry. In particular, Sigmapower had manufactured an internal power supply system known as the “A3” for the AMRAAM missile. At the time that APS bought Sigmapower’s assets, Sigmapower supplied…