EU High Court Opens the Door to Umbrella Liability

The Court of Justice of the European Union has ruled that, under EU law, victims of cartels should be allowed to seek damages from cartel members for higher prices paid to noncartel members that were able to raise their prices under the pricing “umbrella” created by the cartel. The CJEU’s formal endorsement of such umbrella liability diverges from the approach evolving in U.S. courts, which have been reluctant to embrace umbrella liability.