Olean Wholesale Grocery Coop., Inc. v. Bumble Bee Foods LLC

• Court: U.S. Court of Appeals — Ninth Circuit
• Writing for the Court: IKUTA, Circuit Judge
• Citation: Olean Wholesale Grocery Coop., Inc. v. Bumble Bee Foods LLC, 31 F.4th 651 (9th Cir. 2022)
• Decision Date: 08 April 2022
• Docket Number: 19-56514
• Parties: OLEAN WHOLESALE GROCERY COOPERATIVE, INC., Beverly Youngblood, Pacific Groservice, Inc., DBA Pitco Foods, Capitol Hill Supermarket, Louise Ann Davis Matthews, James Walnum, Colin Moore, Jennifer A. Nelson, Elizabeth Davis-berg, Laura Childs; Nancy Stiller; Bonnie Vanderlaan; Kristin Millican; Trepco Imports and Distribution, Ltd.; Jinkyoung Moon; Corey Norris; Clarissa Simon; Amber Sartori; Nigel Warren ; Amy Joseph; Michael Juetten; Carla Lown; Truyen Ton-Vuong, AKA David Ton; A-1 Diner; Dwayne Kennedy; Rick Musgrave; Dutch Village Restaurant; Lisa Burr; Larry Demonaco; Michael Buff; Ellen Pinto; Robby Reed; Blair Hysni; Dennis Yelvington; Kathy Durand Gore; Thomas E. Willoughby III; Robert Fragoso; Samuel Seidenburg; Janelle Albarello; Michael Coffey; Jason Wilson; Jade Canterbury ; Nay Alidad; Galyna Andrusyshyn; Robert Benjamin; Barbara Buenning; Danielle Greenberg ; Sheryl Haley; Lisa Hall; Tya Hughes; Marissa Jacobus; Gabrielle Kurdt; Erica Pruess; Seth Salenger; Harold Stafford ; Carl Lesher; Sarah Metivier Schadt; Greg Stearns; Karren Fabian; Melissa Bowman; Vivek Dravid; Jody Cooper; Danielle Johnson; Herbert H. Kliegerman; Beth Milliner; Liza Milliner; Jeffrey Potvin; Stephanie Gipson; Barbara Lybarger; Scott A. Caldwell; Ramon Ruiz; Thyme Cafe & Market, Inc.; Harvesters Enterprises, LLC; Affiliated Foods, Inc.; Piggly Wiggly Alabama Distributing Co., Inc.; Elizabeth Twitchell; Tina Grant; John Trent ; Brian Levy; Louise Adams; Marc Blumstein; Jessica Breitbach; Sally Crnkovich; Paul Berger; Sterling King; Evelyn Olive ; Barbara Blumstein; Mary Hudson; Diana Mey; Associated Grocers of New England, Inc.; North Central Distributors, LLC; Cashwa Distributing Co. Of Kearney, Inc.; Urm Stores, Inc.; Western Family Foods, Inc.; Associated Food Stores, Inc.; Giant Eagle, Inc. ; Mclane Company, Inc.; Meadowbrook Meat Company, Inc.; Associated Grocers, Inc. ; Bilo Holding, LLC; WinnDixie Stores, Inc.; Janey Machin; Debra L. Damske; Ken Dunlap; Barbara E. Olson; John Peychal; Virginia Rakipi; Adam Buehrens; Casey Christensen; Scott Dennis; Brian Depperschmidt; Amy E. Waterman; Central Grocers, Inc.; Associated Grocers of Florida, Inc. ; Benjamin Foods LLC; Albertsons Companies LLC; H.E. Butt Grocery Company ; Hyvee, Inc. ; The Kroger Co. ; Lesgo Personal Chef LLC ; Kathy Vangemert; Edy Yee; Sunde Daniels; Christopher Todd; Publix Super Markets, Inc. ; Wakefern Food Corp.; Robert Skaff; Wegmans Food Markets, Inc. ; Julie Wiese; Meijer Distribution, Inc.; Daniel Zwirlein; Meijer, Inc. ; Supervalu Inc.; John Gross & Company; Super Store Industries; W Lee Flowers & Co Inc.; Family Dollar Services, LLC; Amy Jackson; Family Dollar Stores, Inc.; Katherine Mcmahon ; Dollar Tree Distribution, Inc.; Jonathan Rizzo; Greenbrier International, Inc.; Joelyna A. San Agustin; Alex Lee, Inc. ; Rebecca Lee Simoens; Big Y Foods, Inc. ; David Ton; Kvat Food Stores, Inc., DBA Food City; Affiliated Foods Midwest Cooperative, Inc.; Merchants Distributors, LLC; Brookshire Brothers, Inc.; Schnuck Markets, Inc. ; Brookshire Grocery Company ; Kmart Corporation ; Certco, Inc.; Rushin Gold, LLC, DBA The Gold Rush; Unified Grocers, Inc.; Target Corporation; Simon-Hindi, LLC ; Fareway Stores, Inc. ; Moran Foods, LLC, DBA Save-A-Lot; Woodman's Food Market, Inc. ; Dollar General Corporation; Sam's East, Inc.; Dolgencorp, LLC; Sam's West, Inc.; Krasdale Foods, Inc.; Walmart Stores East, LLC ; CVS Pharmacy, Inc.; Walmart Stores East, LP; Bashas' Inc. ; Wal-mart Stores Texas, LLC ; Marc Glassman, Inc. ; Wal-mart Stores, Inc.; 99 Cents Only Stores ; Jessica Bartling; Ahold U.S.A., Inc.; Gay Birnbaum; Delhaize America, LLC ; Sally Bredberg; Associated Wholesale Grocers, Inc.; Kim Craig; Maquoketa Care Center ; Gloria Emery; Erbert & Gerbert's, Inc. ; Ana Gabriela Felix Garcia; Janet Machen; John Frick; Painted Plate Catering ; Kathleen Garner ; Robert Etten; Andrew Gorman; Groucho's Deli of Five Points, LLC; Edgardo Gutierrez; Groucho's Deli of Raleigh ; Zenda Johnston; Sandee's Catering; Steven Kratky; Confetti's Ice Cream Shoppe; Kathy Lingnofski; End Payer Plaintiffs; Laura Montoya; Kirsten Peck; John Pels; Valerie Peters; Elizabeth Perron ; Audra Rickman; Erica C. Rodriguez, Plaintiffs-Appellees, and Jessica Decker, Joseph A. Langston, Sandra Powers, Grand Supercenter, Inc., The Cherokee Nation, US Foods, Inc., Sysco Corporation, Gladys, LLC, Spartannash Company, Bryan Anthony Reo, Plaintiffs, v. BUMBLE BEE FOODS LLC ; StarKist Co.; Dongwon Industries Co., Ltd., Defendants-Appellants, and King Oscar, Inc.; Thai Union Frozen Products PCL; Del Monte Foods Company; Tri Marine International, Inc.; Dongwon Enterprises; Del Monte Corp.; Christopher D. Lischewski; Lion Capital (Americas), Inc.; Big Catch Cayman LP, AKA Lion/Big Catch Cayman LP ; Francis T Enterprises ; Glowfisch Hospitality ; Thai Union North America, Inc., Defendants.

31 F.4th 651

OLEAN WHOLESALE GROCERY COOPERATIVE, INC., Beverly Youngblood, Pacific Groservice, Inc., DBA Pitco Foods, Capitol Hill Supermarket, Louise Ann Davis Matthews, James Walnum, Colin Moore, Jennifer A. Nelson, Elizabeth Davis-berg, Laura Childs; Nancy Stiller; Bonnie Vanderlaan; Kristin Millican; Trepco Imports and Distribution, Ltd.; Jinkyoung Moon; Corey Norris; Clarissa Simon; Amber Sartori; Nigel Warren ; Amy Joseph; Michael Juetten; Carla Lown; Truyen Ton-Vuong, AKA David Ton; A-1 Diner; Dwayne Kennedy; Rick Musgrave; Dutch Village Restaurant; Lisa Burr; Larry Demonaco; Michael Buff; Ellen Pinto; Robby Reed; Blair Hysni; Dennis Yelvington; Kathy Durand Gore; Thomas E. Willoughby III; Robert Fragoso; Samuel Seidenburg; Janelle Albarello; Michael Coffey; Jason Wilson; Jade Canterbury ; Nay Alidad; Galyna Andrusyshyn; Robert Benjamin; Barbara Buenning; Danielle Greenberg ; Sheryl Haley; Lisa Hall; Tya Hughes; Marissa Jacobus; Gabrielle Kurdt; Erica Pruess; Seth Salenger; Harold Stafford ; Carl Lesher; Sarah Metivier Schadt; Greg Stearns; Karren Fabian; Melissa Bowman; Vivek Dravid; Jody Cooper; Danielle Johnson; Herbert H. Kliegerman; Beth Milliner; Liza Milliner; Jeffrey Potvin; Stephanie Gipson; Barbara Lybarger; Scott A. Caldwell; Ramon Ruiz; Thyme Cafe & Market, Inc.; Harvesters Enterprises, LLC; Affiliated Foods, Inc.; Piggly Wiggly Alabama Distributing Co., Inc.; Elizabeth Twitchell; Tina Grant; John Trent ; Brian Levy; Louise Adams; Marc Blumstein; Jessica Breitbach; Sally Crnkovich; Paul Berger; Sterling King; Evelyn Olive ; Barbara Blumstein; Mary Hudson; Diana Mey; Associated Grocers of New England, Inc.; North Central Distributors, LLC; Cashwa Distributing Co. Of Kearney, Inc.; Urm Stores, Inc.; Western Family Foods, Inc.; Associated Food Stores, Inc.; Giant Eagle, Inc. ; Mclane Company, Inc.; Meadowbrook Meat Company, Inc.; Associated Grocers, Inc. ; Bilo Holding, LLC; WinnDixie Stores, Inc.; Janey Machin; Debra L. Damske; Ken Dunlap; Barbara E. Olson; John Peychal; Virginia Rakipi; Adam Buehrens; Casey Christensen; Scott Dennis; Brian Depperschmidt; Amy E. Waterman; Central Grocers, Inc.; Associated Grocers of Florida, Inc. ; Benjamin Foods LLC; Albertsons Companies LLC; H.E. Butt Grocery Company ; Hyvee, Inc. ; The Kroger Co. ; Lesgo Personal Chef LLC ; Kathy Vangemert; Edy Yee; Sunde Daniels; Christopher Todd; Publix Super Markets, Inc. ; Wakefern Food Corp.; Robert Skaff; Wegmans Food Markets, Inc. ; Julie Wiese; Meijer Distribution, Inc.; Daniel Zwirlein; Meijer, Inc. ; Supervalu Inc.; John Gross & Company; Super Store Industries; W Lee Flowers & Co Inc.; Family Dollar Services, LLC; Amy Jackson; Family Dollar Stores, Inc.; Katherine Mcmahon ; Dollar Tree Distribution, Inc.; Jonathan Rizzo; Greenbrier International, Inc.; Joelyna A. San Agustin; Alex Lee, Inc. ; Rebecca Lee Simoens; Big Y Foods, Inc. ; David Ton; Kvat Food Stores, Inc., DBA Food City; Affiliated Foods Midwest Cooperative, Inc.; Merchants Distributors, LLC; Brookshire Brothers, Inc.; Schnuck Markets, Inc. ; Brookshire Grocery Company ; Kmart Corporation ; Certco, Inc.; Rushin Gold, LLC, DBA The Gold Rush; Unified Grocers, Inc.; Target Corporation; Simon-Hindi, LLC ; Fareway Stores, Inc. ; Moran Foods, LLC, DBA Save-A-Lot; Woodman's Food Market, Inc. ; Dollar General Corporation; Sam's East, Inc.; Dolgencorp, LLC; Sam's West, Inc.; Krasdale Foods, Inc.; Walmart Stores East, LLC ; CVS Pharmacy, Inc.; Walmart Stores East, LP; Bashas' Inc. ; Wal-mart Stores Texas, LLC ; Marc Glassman, Inc. ; Wal-mart Stores, Inc.; 99 Cents Only Stores ; Jessica Bartling; Ahold U.S.A., Inc.; Gay Birnbaum; Delhaize America, LLC ; Sally Bredberg; Associated Wholesale Grocers, Inc.; Kim Craig; Maquoketa Care Center ; Gloria Emery; Erbert & Gerbert's, Inc. ; Ana Gabriela Felix Garcia; Janet Machen; John Frick; Painted Plate Catering ; Kathleen Garner ; Robert Etten; Andrew Gorman; Groucho's Deli of Five Points, LLC; Edgardo Gutierrez; Groucho's Deli of Raleigh ; Zenda Johnston; Sandee's Catering; Steven Kratky; Confetti's Ice Cream Shoppe; Kathy Lingnofski; End Payer Plaintiffs; Laura Montoya; Kirsten Peck; John Pels; Valerie Peters; Elizabeth Perron ; Audra Rickman; Erica C. Rodriguez, Plaintiffs-Appellees,andJessica Decker, Joseph A. Langston, Sandra Powers, Grand Supercenter, Inc., The Cherokee Nation, US Foods, Inc., Sysco Corporation, Gladys, LLC, Spartannash Company, Bryan Anthony Reo, Plaintiffs,

v. BUMBLE BEE FOODS LLC ; StarKist Co.; Dongwon Industries Co., Ltd., Defendants-Appellants,andKing Oscar, Inc.; Thai Union Frozen Products PCL; Del Monte Foods Company; Tri Marine International, Inc.; Dongwon Enterprises; Del Monte Corp.; Christopher D. Lischewski; Lion Capital (Americas), Inc.; Big Catch Cayman LP, AKA Lion/Big Catch Cayman LP ; Francis T Enterprises ; Glowfisch Hospitality ; Thai Union North America, Inc., Defendants.

No. 19-56514

United States Court of Appeals, Ninth Circuit.

Argued and Submitted En Banc September 22, 2021 Pasadena, California

Filed April 8, 2022

Gregory G. Garre (argued), Samir Deger-Sen, and Shannon Grammel, Latham & Watkins LLP, Washington, D.C.; Christopher S. Yates, Belinda S. Lee, and Ashley M. Bauer, Latham & Watkins LLP, San Francisco, California; for Defendants-Appellants StarKist Co. and Dongwon Industries Co. Ltd.

Christopher L. Lebsock (argued), Michael P. Lehmann, Bonny E. Sweeney, and Samantha J. Stein, Hausfeld LLP, San Francisco, California, for Plaintiffs-Appellees Direct Purchaser Plaintiff Class.

Jonathan W. Cuneo (argued), Joel Davidow, and Blaine Finley, Cuneo Gilbert & Laduca LLP, Washington, D.C., for Plaintiffs-Appellees Commercial Food Preparer Plaintiff Class.

Thomas H. Burt (argued), Wolf Haldenstein Adler Freeman & Herz LLP, New York, New York; Betsy C. Manifold, Rachele R. Byrd, Marisa C. Livesay, and Brittany N. DeJong, Wolf Haldenstein Adler Freeman & Herz LLP, San Diego, California; for Plaintiffs-Appellees End Payer Plaintiff Class.

Corbin K. Barthold and Cory L. Andrews, Washington, D.C., for Amicus Curiae Washington Legal Foundation.

Ashley C. Parrish and Joshua N. Mitchell, King & Spalding LLP, Washington, D.C.; Steven P. Lehotsky, Jonan D. Urick, Daryl Joseffer, and Jennifer B. Dickey, United States Chamber Litigation Center; Anne M. Voigts, Quyen L. Ta, and Suzanne E. Nero, King & Spalding LLP, San Francisco, California; Kelly Perigoe, King & Spalding LLP, Los Angeles, California; Christopher A. Mohr, Software & Information Industry Association, Washington, D.C.; Jeanine Poltronieri, Internet Association, Washington, D.C.; for Amici Curiae Chamber of Commerce of the United States of America, Software Information Industry Association, and Internet Association.

Randy M. Stutz, American Antitrust Institute, Washington, D.C.; Professor Joshua P. Davis, University of San Francisco School of Law, San Francisco, California; Ellen Meriwether, Cafferty Clobes Meriwether & Sprengal, Media, Pennsylvania; for Amicus Curiae American Antitrust Institute.

Scott L. Nelson and Allison M. Zieve, Public Citizen Litigation Group, Washington, D.C., for Amicus Curiae Public Citizen Inc.

Jocelyn D. Larkin, Lindsay Nako, and David S. Nahmias, Impact Fund, Berkeley, California, for Amici Curiae Impact Fund, Bet Tzedek, California Rural Legal Assistance Foundation, Centro Legal de la Raza, Legal Aid at Work, and Public Counsel.

Karla Gilbride, Washington, D.C., as and for Amicus Curiae Public Justice P.C.

Deborah A. Elman and Chad Holtzman, Garwin Gerstein & Fisher LLP, New York, New York; Warren T. Burns and Kyle K. Oxford, Burns Charest LLP, Dallas, Texas; Robert S. Kitchenoff, President; Lin Y. Chan, Vice President, Committee to Support the Antitrust Laws, Washington, D.C.; for Amicus Curiae Committee to Support the Antitrust Laws.

Jonathan F. Cohn, Joshua J. Fougere, and Jacquelyn E. Fradette, Sidley Austin LLP, Washington, D.C., for Amicus Curiae Consumer Healthcare Products Association.

Before: Andrew J. Kleinfeld, Sidney R. Thomas, Susan P. Graber, William A. Fletcher, Ronald M. Gould, Richard A. Paez, Consuelo M. Callahan, Sandra S. Ikuta, Paul J. Watford, Michelle T. Friedland and Kenneth K. Lee, Circuit Judges.

Dissent by Judge Lee

IKUTA, Circuit Judge:

The primary suppliers of packaged tuna in the United States appeal the district court's order certifying three classes of tuna purchasers who allege the suppliers violated federal and state antitrust laws. The main issue on appeal is whether the purchasers' statistical regression model, along with other expert evidence, is capable of showing that a price-fixing conspiracy caused class-wide antitrust impact, thus satisfying one of the prerequisites for bringing a class action under Rule 23(b)(3) of the Federal Rules of Civil Procedure. Because the district court did not abuse its discretion in concluding that Rule 23(b)(3) was satisfied, we affirm.

I

Bumble Bee,¹ StarKist, and Chicken of the Sea (COSI), and their parent companies are the largest suppliers of packaged tuna in the United States (referred to collectively as the "Tuna Suppliers"). Their products include packaged tuna sold to direct purchasers like Costco and Walmart, and food-service-size tuna products sold to various distributors for resale. Together, the Tuna Suppliers sell over 80 percent of the packaged tuna in the country.

In late 2015, the United States Department of Justice (DOJ) opened an investigation into the packaged tuna industry for violations of federal antitrust law. The DOJ investigation uncovered evidence of a price-fixing scheme among the Tuna Suppliers, which led the DOJ to enter multiple indictments alleging a criminal conspiracy to fix prices of canned tuna for the period from approximately November 2011 through December 2013. Bumble Bee, StarKist, and three tuna industry executives pleaded guilty to the conspiracy. Bumble Bee's former CEO was convicted by a jury of a conspiracy to fix prices.² COSI cooperated with the DOJ and admitted to price fixing in exchange for...