Corporate & Securities Law

Swimsuits and Antitrust

By David Fischer

On Monday, swimsuit maker TYR Sport Inc. filed an antitrust lawsuit against Warnaco Swimwear Inc., parent company of Speedo in the United States District Court for the Central District of California (and against USA Swimming; the United States national team director, Mark Schubert; and Erik Vendt, a swimmer and former “pitchman” for TYR).  The New York Times reports:

In documents filed in United States District Court for the Central District of California, TYR describes a climate in which elite athletes have been led to believe they cannot excel on the world stage unless they wear Speedo?s newest high-tech suit, which was designed with the help of NASA and was unveiled in February.

Among the allegations by TYR are that Speedo, USA Swimming and Schubert systematically ?combined to engage in a campaign of falsely disparaging the products of Speedo?s competitors, including TYR, for the purpose of inducing competitive swimmers to refrain from doing business with Speedo?s competitors.?

The Los Angeles Times reports:

In documents filed in U.S. District Court for the Central District of California, TYR alleges that Speedo, USA Swimming and Schubert “combined to engage in a campaign of falsely disparaging the products of Speedo’s competitors, including TYR, for the purpose of inducing competitive swimmers to refrain from doing business with Speedo’s competitors” and that it was done in an “especially insidious and deceptive manner.”

A quick Google search did not produce the complaint; but if anyone has it and can forward it, we will post it.  It would interesting to see it as the news reports lack details that would allow for a true analysis of the strength and weaknesses of the case.

Full post as published by Antitrust Review on May 16, 2008 (boomark / email).