WHITE PLAINS, N.Y., Feb. 5 /PRNewswire/ -- A recently amended and expanded 134-page federal antitrust complaint by BanxCorp, accused Bankrate Inc. (Nasdaq: RATE) of organizing a price-fixing cartel in a conspiracy with 90 of America's leading websites.

The complaint alleges for example, that Bankrate has used the terms "Banking Marketplace" and "Internet Information Providers" to define its market and broader industry group in its communications with shareholders and S.E.C. filings for years, but in court Bankrate claimed that these terms are meaningless and nonsensical.

Allegedly, Bankrate lists its partners among its competitors in its 10-K filings. It is also presumed that it entered into a non-compete agreement in connection with the acquisition of its competitor and previous partner Bankaholic.com. Nevertheless, Bankrate denied that its partners were competitors.

Recently Bankrate argued that while its conduct may be price fixing in the literal sense, it is not price-fixing in the antitrust sense. However, Bankrate did not disclose that the case upon which it predicated such reasoning, involved a merger of the activities of two competing oil companies into a single entity, which had been formed subject to a previous consent decree from the FTC and several state attorneys general.

On July 7, 2008, the court already ruled that BanxQuote had adequately pled Bankrate's market share and monopoly power and "these claim elements are sufficient as drafted." A number of antitrust claims such as predatory pricing, general antitrust injury and those related to a tying agreement between Bankrate and LendingTree, were also allowed to proceed by the court, and additional rulings are now imminent. 

    For more information contact:
    Norbert Mehl
    norbert.mehl@banx.com
    914-644-1810

Case # 2:07-cv-03398-SDW-MCA BANXCORP v. BANKRATE, INC. https://ecf.njd.uscourts.gov/cgi-bin/iqquerymenu.pl?204594.

SOURCE BanxCorp