Federal Judge Completes Initial Filing Stage of TYR vs. Speedo/USA Swimming, Sets Court Date

LOS ANGELES, California, May 29. IN a ruling made earlier this week, and just made available to the media, Judge James Selna of the United States District Court in California completed the initial stages of TYR's lawsuit against Speedo, USA Swimming, Mark Schubert and Erik Vendt. Selna also set the trial to start in March 2010.

The initial 26-page document upheld nine of TYR's 10 claims heading into the trial portion of the case.

Full Document of Motions Rulings.

It is important to remember that these were not judgments regarding the validity of specific assertions in the lawsuit, but only judgments regarding availability of certain arguments going forward. As part of this initial process, the court must accept all factual allegations as true.

The first through third claims regard Federal and State Antitrust laws. Speedo and USA Swimming moved to dismiss the claims citing immunity under the Sports Act. These motions for dismissal failed.

The fourth claim regards False Advertising regarding Speedo's public assertions by Schubert regarding the advantage found using Speedo's products. TYR also alleged that Speedo representatives skewed the numbers to their advantage in advertising. This motion was allowed to move forward.

The sixth through 10th claims regard various State Law Claims.

The sixth claim by TYR alleges interference in its contract with Vendt, and was allowed to continue in the case.

The seventh claim alleges that Speedo and USA Swimming interfered with TYR's potential economic advantages. The court found that it was enough that TYR alleged that this happened for the allegation to move forward.

The eighth claim alleges trade libel by Speedo. Under California state law, trade libel is an intentional disparagement of the quality of property, which results in pecuniary damage." According to the judgment, TYR failed to prove the various levels needed for a trade libel allegation, and this motion was dismissed.

The ninth claim by TYR alleges that Speedo utilized unfair business practices based on its corporate sponsorship of national teams. This claim also was allowed to move forward.

The 10th claim regards simple legal issues regarding specific handling of the case.

Both TYR and USA Swimming have released responses regarding the ruling, while Speedo stated that it has no comment at this time.

TYR's Response
In a ruling earlier this week in Santa Ana, California, a federal judge has denied legal challenges by Speedo (USA), USA Swimming and Mark Schubert to antitrust claims filed by TYR Sport, Inc.

TYR filed its lawsuit in May 2008, alleging that the relationship between USA Swimming and Speedo, and Schubert's dual role as Olympic team head coach and paid Speedo endorser, was an unlawful restraint of trade. TYR and Speedo are leading competitors in the $200 million market for competitive swimwear and equipment. USA Swimming is the national governing body of the sport, and shares an exclusive endorsement relationship with Speedo.

Among the assertions made by TYR is that Schubert used his stature as national and Olympic team head coach to promote Speedo's products. TYR also claims that Schubert made untrue and disparaging statements about products manufactured by TYR, as well as those of other Speedo competitors.

Speedo, USA Swimming and Schubert filed motions seeking to dismiss TYR's claims, and a separate motion was filed by USA Swimming and Schubert to strike TYR's state law claims. In response, United States District Judge James V. Selna issued a 26-page opinion upholding the state and federal antitrust claims brought by TYR.

"We are pleased by this ruling," said TYR's counsel, Larry Hilton. In total, nine claims will proceed toward trial on the court-appointed date in March 2010.

USA Swimming's Response
Statement from USA Swimming's legal counsel, Richard R. Young:
"The court dismissed some of the motions brought against USA Swimming, and let others go forward. This was not surprising to us, as a Motion to Dismiss hearing requires that the court assume the facts as alleged by Tyr. We are confident, however, that once the court is allowed to assess these facts, USA Swimming will prevail."

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