27 Feb Federal Judge Denies Motion to Dismiss Bid Rigging Class Action
On February 24, 2020, the Honorable Catherine Eagles substantially denied the effort by The Estates and related companies to dismiss a complaint alleging that homeowners were harmed by a bid-rigging scheme in foreclosures in North Carolina. The Plaintiffs in the lawsuit are represented by the J.C. White Law Group PLLC and Blue LLP.
Plaintiffs allege that the Estates and individuals and companies affiliated with it engaged in a “big-rigging” scheme to manipulate foreclosures in North Carolina.
The Court upheld Plaintiffs’ Sherman Antitrust Act and North Carolina Unfair and Deceptive Trade Practices claims, finding that the allegations of Plaintiffs’ Complaint shows a conspiracy to rig bids and a per se violation of the Sherman Antitrust Act. The Court also found that the Plaintiffs alleged facts that show that this conspiracy imposed an unreasonable restrain on trade and that the Plaintiffs demonstrated an antitrust injury as a result of the alleged conspiracy.
The case will proceed in federal court, and class certification and discovery are the next steps.
The court’s order is available here: