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United States v. Nippon Paper Industry Corporation

United States Court of Appeals for the First Circuit
109 F.3d 1 (1st Cir. 1997)


Nippon Paper Industry Corporation (Nippon) (defendant) was a Japanese paper manufacturer. Nippon sold paper to trading houses. In turn, the trading houses had United States subsidiaries that sold the paper to United States buyers. The United States (plaintiff) initiated a criminal prosecution against Nippon, alleging a price-fixing conspiracy in violation of § 1 of the Sherman Act, 15 U.S.C. § 1. Nippon moved to dismiss the case, arguing the alleged conduct took place in Japan and was not governed by the Sherman Act. The United States argued the conspiracy was directed toward the United States, the conspiracy had substantial effects in the United States, and the subsidiaries that sold Nippon’s paper operated in the United States. Therefore, the entire conspiracy was governed by the Sherman Act. The district court agreed with Nippon and dismissed the case. The United States appealed.

Rule of Law


Holding and Reasoning (Selya, J.)


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