Class partially denied in suit against Olympic swimming group

The Fédération Internationale de Natation scored a major victory Friday against a putative class of Olympic and elite-level swimmers who alleged a conspiracy to block the establishment of a league for top-tier international swimmers and cement a monopoly.

U.S. Magistrate Judge Jacqueline Scott Corley denied the plaintiffs' motion for class certification in part, allowing the injunctive relief class to proceed but denying certification of the damages class.

The proposed class was all swimmers who signed contracts to compete in International Swimming League events from 2018 to the present. Shields et al. v. FINA, 3:18-cv-07393, (N.D. Cal., filed Dec. 07, 2018).

A team of attorneys from Winston & Strawn LLP, Farella Braun + Martel LLP and Lieff Cabraser Heimann & Bernstein LLP represent the plaintiffs. Christopher S. Yates, Daniel M. Wall and Aaron T. Chiu of Latham & Watkins LLP represent the defendants.

"Plaintiffs' bid to certify a damages class raises a number of adequacy concerns," Corley wrote. "Most importantly, there is no apparent way to determine individual damages (and causation) without putting class members fundamentally at odds with one another, a conflict that goes to the heart of the litigation."

Specifically Corley pointed to the reward structure of International Swimming League events. Teams compete against one another for monetary rewards, with varying dollar amounts based on placement. Corley said that plaintiffs did not offer an adequate method to determine how to distribute damages in a way that is fair to all class members.

According to Corley's order, FINA is given power by the International Olympic Committee to set the qualifications for athletes to compete in the Olympic Games.

"The gravamen of plaintiffs' complaint is that FINA uses its control over Olympic aquatic sports to determine the terms of compensation and competition for international swimming events outside of the Olympic Games and FINA's own competitions," she wrote.

Plaintiffs argued that FINA's alleged threats to prevent swimmers from qualifying for the Olympics if they competed in International Swimming League competitions constitute anticompetitive behavior. The defendants are facing another lawsuit from the league as well. International Swimming League Ltd. v. FINA, 3:18-cv-07394, (N.D. Cal., filed Dec. 07, 2018).