Animal Science Products, a U.S. company, sued Hebei Welcome Pharmaceutical Co., a Chinese company, for violating U.S. antitrust laws by coordinating prices and artificially decreasing supply. Hebei moved to dismiss the case, stating that they were acting according to Chinese law. The district court denied the dismissal, and the jury trial found in favor of Animal Science Products, ordering Hebei to pay them $147 million in damages.
Hebei appealed, and the circuit court reversed the district court's denial to dismiss. The circuit court reasoned that the district court had erred in not deferring to the Chinese government's interpretations of its laws, as the Chinese government had appeared in court to defend Hebei's actions. The Supreme Court took the appeal, and reversed the circuit court in a 9-0 decision written by Justice Ginsburg.
John Shu will join us to discuss the significance of this important decision.
John Shu, Attorney and Legal Commentator
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