Factors Did Not Violate Sherman Act By Refusing to Extend Credit to Retailer

A bankruptcy trustee for a garment retailer is unable to sustain allegations that factors’ refusals to extend credit to the retailer constituted an illegal price fixing conspiracy and group boycott, according to a decision by the U.S. Court of Appeals for the Third Circuit, which upholds a district court’s dismissal in its entirety (Burtch v. Milberg Factors, Inc., 3d Cir., No. 10-2818).

Challenged Conduct.

After it was unable to obtain credit through factors, which assume garment manufacturers’ risks of liability with respect to the amount owed to them by retailers, Factory 2-U Stores, Inc., a garment retailer, filed ...