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Antitrust Keyed to Areeda, 8th Ed.
Copperweld Corp. v. Independence Tube Corp.
Citation:
467 U.S. 752 (1984)Facts
In 1972, Copperweld Corporation purchased the Regal Tube division from Lear Siegler, Inc. and transferred its assets to a newly formed, wholly owned Pennsylvania corporation, Regal Tube Co. The sale agreement bound Lear Siegler not to compete with Regal for five years. Shortly before the acquisition, David Grohne, who had been president of the Regal division, accepted a job at Lear Siegler. While working there, Grohne formed Independence Tube Corporation to compete in the structural steel tubing market. When Copperweld and Regal executives learned of Grohne’s plans, they sent warning letters to potential suppliers, customers, and financiers of Independence, stating they would take all necessary steps to protect their rights under the purchase agreement. One such letter caused Yoder Co. to void its acceptance of Independence’s order for a tubing mill, delaying Independence’s entry into the market by nine months. Independence sued, alleging that Copperweld and Regal had conspired to violate Section 1 of the Sherman Act.
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