• 
• 
• 

• 
• 

Starbucks Litigation

Date Filed: September 25, 2006

Court: U.S. District Court

Location: Seattle

Ticker Symbol: SBUX

A class action lawsuit was filed today against Starbucks Corporation, claiming the company engages in a range of anti-competitive activities aimed at eliminating competition.

The complaint states that Starbucks has exploited its monopoly power in the specialty coffee retail market to stifle competition through a series of predatory practices including exclusive lease agreements, "cluster bombing" of stores and competitor buy-outs.

The complaint cites a number of predatory tactics used by Starbucks, including reports in which Starbucks locks out competition through a series of exclusive lease agreements with property managers of Class A high-rises, preventing other specialty coffee shops from operating in the same building.

The complaint also states that Starbucks offers to buy out competitors at below-market prices, and threatens to open stores nearby if the offer is rejected.

The suit is asking the court to end what it claims are anti-competitive activities and seeks to represent coffee shop owners who seek to occupy retail space in commercial office buildings in Seattle or Bellevue.

To view a copy of the complaint, please click here.

Recent Developments:

October 4, 2007 - The court denied Starbucks motion for summary judgment allowing the case to move forward. The court ruled the plaintiff raises a genuine issue of material fact and has been able to identify a number of facts that, if true, could amount to unlawful conduct under antitrust laws.