Brooke Group Ltd. v. Brown & Williamson Tobacco Corp.

After Liggett (plaintiff, now Brooke Group Ltd.) launched a successful low-priced generic cigarette line, Brown & Williamson Tobacco Corporation (Brown) (defendant) introduced a directly competing generic line, and a price war followed in which Brown offered volume rebates to wholesalers that pushed its effective price below Liggett's. Liggett sued for predatory pricing, arguing Brown's rebates were meant to force Liggett to raise its generic prices, narrowing the gap with branded cigarettes and preserving Brown's branded-cigarette profits — allegedly through passive coordination with other manufacturers. A jury found for Liggett, but the district court granted Brown judgment as a matter of law, and the court of appeals affirmed.