LIGGETT GROUP v. BROWN & WILLIAMSON TOBACCO

Nos. 90-1851, 90-1854, 91-1221.

964 F.2d 335 (1992)

LIGGETT GROUP, INCORPORATED, now named Brooke Group, Limited, Plaintiff-Appellant, v. BROWN & WILLIAMSON TOBACCO CORPORATION, Defendant-Appellee, and Generic Products Corporation, Defendant. (Three Cases)

United States Court of Appeals, Fourth Circuit.

Decided May 11, 1992.

As Amended May 11, 1992.


Attorney(s) appearing for the Case

Phillip Areeda, Cambridge, Mass., argued (William H. Hogeland, Bruce Topman, Mudge, Rose, Guthrie, Alexander & Ferdon, New York City, Abraham D. Sofaer, John M. Townsend, Hughes, Hubbard & Reed, Washington, D.C., Jean E. Sharpe, Brooke Group, Ltd., New York City, Garret G. Rasmussen, C. Allen Foster, Kenneth L. Glazer, Patton, Boggs & Blow, Greensboro, N.C., Josiah S. Murray, III, James W. Dobbins, Liggett Group, Inc., Durham, N.C., on brief), for plaintiff-appellant.

Griffin Boyette Bell, King & Spalding, Atlanta, Ga., argued (Abbott B. Lipsky, Jr., King & Spalding, Atlanta, Ga., Norwood Robinson, Michael L. Robinson, Petree, Stockton & Robinson, Winston-Salem, N.C., Martin London, Daniel J. Leffell, Paul, Weiss, Rifkind, Wharton & Garrison, New York City, on brief), for defendant-appellee.

Before ERVIN, Chief Judge, and HALL and NIEMEYER, Circuit Judges.


OPINION

NIEMEYER, Circuit Judge:

Liggett Group, Inc., charges Brown & Williamson Tobacco Corporation with pursuing a primary-line predatory pricing scheme in the sale of generic cigarettes during the period 1984-85 in violation of § 2(a) of the Robinson-Patman Act, 15 U.S.C. § 13(a). Liggett contends that Brown & Williamson charged below-average-variable-cost prices1 to force Liggett either to raise the prices...

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