Luxury retailer Hermes secured a victory in federal district court. Sued in a class action for alleged violations of federal (and state) anti-trust law, a federal judge threw out the lawsuit after stating that the plaintiff had not shown how competition for Hermes’s luxury items was affected adversely because of its alleged misconduct.
But Hermes’s victory may be short-lived as the judge allowed the plaintiff another attempt to demonstrate anti-competitive harm resulting from Hermes’s alleged conduct.
This case serves as a reminder that, whether in federal or state court, parties must be acutely aware of the legal elements required to prevail on a matter. Too often, lawyers—eager to secure a favorable settlement (along with any attorney’s fees)— file lawsuits without fully understanding the legal requirements they must satisfy to prevail on a claim. In doing so, these lawyers open their doors to challenges from the outside—and, in turn, invite judges to toss their claims out.
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