For All Intents and Purposes the Ninth Circuit Shakes Up Antitrust Law With Sidibe v. Sutter Decision

The June 4, 2024 Ninth Circuit Court of Appeals decision in Sidibe v. Sutter Health marks a potential shift in how rule of reason antitrust cases are approached and adjudicated. The opinion underscores the significance of historical evidence in antitrust trials it places considerable emphasis on analyzing the purpose behind challenged conduct. 

In Sidibe, plaintiffs were a class of consumers insured by health plans that contracted with Sutter Health. The class alleged that Sutter Health, a major healthcare provider in Northern California, charged supracompetitive rates to these health plans, which were then passed on to the class in the form of higher premiums in violation of federal and California antitrust laws.

At the District Court level, the jury found for Sutter Health. On appeal, the Ninth Circuit reversed and remanded for a new trial. The reversal…