Amazon, Apple win dismissal of US consumer lawsuit over iPhone prices

Sept 29 (Reuters) - Apple AAPL.O and Amazon AMZN.O won a ruling on Monday dismissing a consumer antitrust lawsuit in Seattle federal court that accused them of conspiring to inflate prices of iPhones and iPads sold on Amazon’s platform.

U.S. District Judge Kymberly Evanson in her ruling faulted the plaintiffs’ lawyers for dragging out the litigation after the original plaintiff sought to withdraw from the 2022 case.

Evanson said the attorneys misled the court, Apple and Amazon about the plaintiff’s intent to abandon the proposed class action while attempting to add new plaintiffs.

The judge said she relied on representations that the plaintiff had not withdrawn when she allowed his lawyers in May to amend the complaint and add two more consumers.

The plaintiffs, represented by Hagens Berman Sobol Shapiro, urged Evanson not to revisit her earlier order allowing the lawsuit to be amended, arguing that proposed class actions can proceed even if the lead plaintiff exits.

Lawyers for the plaintiffs did not immediately respond to requests for comment. Apple, Amazon and lead attorneys for the companies also did not immediately respond to requests for comment.

The plaintiffs were U.S. residents who bought new iPhones and iPads on Amazon starting in January 2019. They alleged that a 2019 agreement between Apple and Amazon violated antitrust laws by restricting the number of competitive resellers.

According to the lawsuit, Amazon had about 600 third-party Apple resellers in 2018. Apple allegedly agreed to give Amazon product discounts if Amazon reduced the number of resellers on its marketplace.

Apple and Amazon have denied wrongdoing.

In May, Hagens Berman said it would not oppose a combined sanction of $223,000 in legal fees to Amazon and Apple after the court concluded that the plaintiffs failed to "candidly and/or accurately describe their client’s intentions."

The firm in a court filing then said with hindsight "the situation could have been handled better" and vowed to ensure the case was conducted with "the highest degree of professionalism by all involved."

Evanson's order on Monday said the plaintiffs could file an amended complaint.

The case is Floyd v Amazon.com Inc, U.S. District Court for the Western District of Washington, No. 2:22-cv-01599.

For plaintiffs: Steve Berman of Hagens Berman Sobol Shapiro

For Apple: Mark Perry of Weil Gotshal & Manges; Mark Parris of Orrick, Herrington & Sutcliffe; and Anna Pletcher of O’Melveny & Myers

For Amazon: Mark Hopson of Sidley Austin; John Goldmark of Davis Wright Tremaine; and Jon Dugan of Redgrave