Lieff Cabraser Announces That Plaintiffs Defeat Motion to Dismiss California Bail Bonds Antitrust Litigation
First-of-its-kind class action antitrust case brought by Lieff Cabraser and Justice Catalyst, Public Counsel, the
Read a copy of the Court’s
The suit alleges that “sureties”—the companies that back the bonds sold by retail bond agents—have orchestrated a default premium of 10% of the bond amount, and then worked to eliminate discounting that would otherwise have occurred if the market operated competitively. The class action seeks damages for the hundreds of thousands of Californians who overpaid for unlawfully inflated bail bond prices, and to prevent this unlawful overcharging to continue.
Judge Tigar’s Order holds that the plaintiffs have successfully overcome all but one of defendants’ claims of immunity from prosecution, and upheld even that one with respect to the alleged agreement not to discount. The Court further upheld plaintiffs’ Cartwright Act claim, allowing plaintiffs to proceed on both aspects of the conspiracy they alleged—the agreement to fix bond premium rates, and the agreement not to rebate. The Court denied defendants’ arguments that the plaintiffs’
“This is a significant victory moving the plaintiffs’
“The ruling signifies that our system-involved clients and their families can continue their fight to expose the anti-competitive and deceptive practices used by the bail industry to profit from over-policing and the criminalization of poverty,” said Cindy Pánuco, of Public Counsel’s
“This case shows how important antitrust law is,” said Ben Elga, Executive Director of Justice Catalyst Law. “When companies conspire to inflate prices, people can be literally forced to choose between paying unfair prices and their freedom.”
“This ruling reinforces the important role that the antitrust laws can play in leveling the playing field and advancing the cause of economic justice for everyone,” said
The plaintiff class is defined in the Complaint as: “All persons who, between
Judge Tigar’s Order granted certain defendants’ motions to dismiss on the basis that the plaintiffs had not alleged sufficient allegations that those defendants participated in the conspiracy. Plaintiffs have leave to amend to provide those allegations, and will file an amended complaint by
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