Panini, Fanatics Lawsuits to Continue Per Judge
Late Monday, a judge in the Southern District of New York ruled that the two lawsuits filed by Panini and Fanatics against each other can continue. In a report by By Michael McCann and Eben Novy-Williams of Sportico, Judge Laura Swain partially granted and denied certain aspects of both lawsuits. In the lengthy report, Swain said that both suits had merrit, while parts of them were dismissed and would be required to refile with more evidence within a 21 day time period.
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Fanatics says that Panini does not have legal standing regarding their anti-trust claims. But Swain wasn't entirely convinced by Fanatics. She said, “[Panini] adequately pleaded facts” that support an argument Fanatics enjoys “monopoly power” through “its ability to set prices and exclude competitors.” But she did dismiss claims by Panini that they have been damaged in a way that would require the judicial system to intervene, adding that “as one of the two remaining competitors in the field, Panini benefitted from the alleged market concentration as a prevailing duopolist with ‘the opportunity and incentive’ to increase prices.”
In regards to the countersuit by Fanatics, Swain ruled against and in favor of aspects of the case. Claims by Fanatics that Panini created unfair competition were also not convincing enough for Swain, saying that “Panini merely cost Fanatics an exclusive advantage” falls short for an unfair competition claim since it doesn’t show “any direct commercial benefit for Panini.”
But in favor of Fanatics, Judge Swain allowed arguments regarding their claim of Panini undermining prospective business relationships regarding employees and staffing. The issue stems from Panini allegedly telling employees they could face legal consequences if they were to jump ship and go work for Fanatics.
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When it comes to the two lawsuits, basically Fanatics is accusing Panini of illegally interfering with their business relationships, while Panini is accusing Fanatics of anti-trust practices. Wading through all the legal jargon, Judge Swain has allowed these cases to go to discovery, which will require sworn testimony for the plaintiffs and the defendants, and will require key evidence to be filed and witnesses deposed, assuring that there won't be a quick resolution to this situation.
Meanwhile, the collectors are caught in the middle. While the average consumer has not felt the effects (besides seeing Topps print NBA and NFL cards again), it remains to be seen what the end of the game will look like. Say Panini wins their suit with anti-trust claims, will more companies be allowed to print licensed cards? And what about Fanatics claims of business dealings interference? Will there be punitive damages awarded to Fanatics, rendering Panini more vulnerable to business breakdowns?
Regardless of the outcomes, it could be months or years before this is over.
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After graduating from the University of North Dakota in 2008, Cole worked as an advertising copywriter until shifting to print journalism a few years later. Managing three weekly newspapers in the Dakotas, Cole won numerous awards from the North Dakota Newspaper Association including Best of the Dakotas and, their top award, General Excellence. He returned to collecting in 2021 and has since combined his passion for writing with his love of cards. Cole also writes for the Sports Cards Nonsense newsletter and has made guest appearances on multiple sports card collecting podcasts including Sports Cards Nonsense, and the Eephus Baseball Cards Podcast. IG: coleryan411 X: @colebenz