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P r e c e de nt i al or N on-P r e c e de nt i al : P r e c e de nt i al D ocke t N o . 09-1997

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w . vi ll anova . e du/thir dc ir c uit_2010/1591P RE CE DE NT I AL
UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

___________ N o. 09- 1997

___________ S T A C IE B Y E R S a n d D E B O R A H A . S E L T Z E R , i ndi vi dual l yand on beha l f of a l l ot her s s i m i l ar l ys i tuat ed
A p p e llan ts

v. I N TU I T, I N C. ; H & R B LO CK D I G I TA L TA X SO LU TI O N S, L L C ; an d F R E E F IL E A L L IA N C E , L L C , ea c h in d iv id u a lly and on beha l f of a l l ot her s s i m i l ar l ys i tuat ed; THE I NTE RNAL RE VENUE S ERVI CE

_______ A p p e a l f ro m th e U n ited S tate s D istric t C o u rt f o r th e E a ste rn D istric t o f P e n n sy lv a n ia ( N o. 07- 4753) D istri ct C o u rtJu d g e: H o n o rab le T h o m as N

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___________ OP I NI ON

___________ G A R T H , C i r cui tJ udge: T hi s appea l ar i s es out of t he D i s t r i ct C our t ’ s di s m i s s al of a p u tativ e c las s a c ti o n b ro u g h t b yP lain tiff -A p p e llan ts S tac ie B y er s and D ebor ah A

. Sel t zeragai ns tI ntui t , I nc. , H & R B l ock D i gi t al T ax Sol u ti o n s L L C , Fr ee Fi l e A l l i ance , L L C , and the In te rn a l R e v e n u e S e rv ic e . W e w ill a f f ir m . I. A. I n 1998, C ongr es s pas s ed the I nt ernal R evenue Ser vi ce R estruc turi n g an d R ef

o rm A ct, P u b

. L

. N o . 1 0 5 -20 6 , T it le II, 112 St at

. 723 ( 1998) ( “R R A ”)

. T he R R A s t at es , i n pert i nent part, that “[i ] ti s t he pol i cyof C ongr es s t hatpaper l es s fi l i ng s houl d be t he pr efe r r ed and m os t conveni ent m eans of fil i ng F e d e ra l tax a n d in f

o rm a tio n re tu rn s,” a n d c o n se q u e n tly th a t “it s houl d be the goal of the I nt ernal R evenue Servi ce t o have a t l ea st 8 0 per centof al l s uch r eturns fi l ed el ectr oni cal l ybythe5 y e a r 2 0 0 7 .” Id . a t § 2 0 0 1 (a ). R athert han or der i ng t he I R S t o devel op i t s ow n i nt ernal el ect roni c fi l i ng sy st em i n o rdert o achieve t his go al , C on gress m andat ed thatt he I R S “s houl d cooper a t e wi t h and enc our age the p riv a te se c to r b y e n c o u ra g in g c o m p e tit io n to in c re a se e lec tro n ic f ili n g o f su c h re tu rn s,” id ., a n d to “ e sta b lish a p lan to e lim in a te barr i er s , pr ovi de i ncent i ves , and us e compet i t i ve mar ketfor ces to in c re a s e e le c tr o n ic f

ilin g g ra d u a lly o v e r t h e n e x t 1 0 y e a rs ....” Id. at § 2 0 0 1 (b). I n r e s p o n s e , t h e I RS i n i t i a t e d t h e F r e e F i l e P r o g r a m, pur s uant t o w hi ch i t ent er ed i nt o an agr eementi n O ct ober2002 (“ 2 0 0 2 A g re e m e n t” ) w ith F re e F ile A ll i a n c e , L L C (“ F F A ” ), a cons or t i um of compa ni es i n the el ectr oni c t ax pr epar at i on and fi l i ng i ndus t r y . T he 2002 A g ree m entpr ovi ded thatt he i nd ividual compani es compri s i ng FFA w oul d offe rfr ee el ectr oni c fi l i ng ( “e- fi l i n g ”) servi ces t o at least60% of t axpay e r s , b u ti td i d n o ts e ta n u p p e rl i mi ta s t o th e p e r c e n t a ge of taxpay ers w ho cou l d b e off ered free e- fi l i ng services

. T h e 2 0 0 2 A g re e m e n t ex p ire d a f ter th re e y e a rs, a n d in 2005 t he I R S and FFA ent er ed i n to a n ew agr eement( “2005 A gr eement ”) w her ei n t heya g r eed t o ext end the pr ovi s i ons of the i ni t i al agr eement , s ubj ectt o cert ai n amendm ent s . Forexampl e, i n contr as tt o t he 2002 A gr eement , the 2005 A gr eementl i m i t ed t he per cent age of

t axpay er s eli g i bl e t o r ece i ve fr ee e - fi l i ng s ervi ces fr om FFA t o the 70% of t axpay i ng popul at i on w i t h the l ow es t adj us t ed gros s i ncome. I n addi t i on, t he 2005 A gr eement im p o se d a c a p o n th e a m o u n t o f f re e e -f ili n g se rv ice s a v a ilab le from anyi nd i vidual F F A m em ber at50 % of all tax p ay ers . T hes e pr o v is i ons ( r efe r r ed t o her ei naft eras t he “Cei l i ngT he IO A A provides: 1 ( a) I ti s t he s ens e of C ongr es s t hat eac h s ervi ce or t hing of value provided by an agenc y (exc e p t a m i xed ow ner s hi p G overnm ent corpor at i on) t o a per s on ( exce pta per s on on offi ci al bus i nes s of the U ni t ed St at es G overnm en t ) i s t o b e s e l f- s us t ai ni ng t o t he ext entpos s i bl e. ( b) T he hea d of ea ch ag en cy ( exce pta mi xed ow ner s hi p G over nm ent cor por at i on) m ay pr es cr i be r egul at i ons es t abl i s hi ng the char ge for a s ervi ce orthi ng of val ue pr ovi ded byt he agenc y . R egul at i ons pr es cr i bed by the heads of exec ut i ve agenci es ar e s ubj ectt o pol i ci es 6 Pr ovi s i ons ”) w er e i ns ert ed byt he I R S i n orde rt o ens ur e the c o n t i n u i n g v i t a l i t yo f

t h e F r e e F i l e P r o g r a m, wh i c h t h e I RS fea r ed mi ghtot herw i s e ca us e manye- fi l i ng vendor s t o go outof bus i nes s , t her ebyfrus t r at i ng t he progr am’s ul t i m at e goal s . See T r ans cr i ptof O r al A r gum entat 21- 22, B y er s v. I ntui t , I nc. , N o. 0 9 -19 9 7 (3d C ir

. N o v . 1 7 , 2 0 0 9 ). B. In N ov em ber 2 00 7, S t aci e B y ers i nit i at ed a p utat i ve clas s ac ti o n o n b eh alf of U

. S

. taxp ay ers a g ains t FF A an d it s m em b ers (c o ll ec ti v elyref

erred to h ere inaf

ter as the “F F A M em b ers” ), al l egi ng t hati n char gi ng fee s i n excha nge forpr ovi di ng e- fi l i ng s ervi ces , t he FFA M ember s vi ol at ed the I ndepende ntO ffi ces A p p rop ri a tio n s A ct, 3 1 U

. S

. C

. § 9 7 0 1 (“IO A A ”). B y ers 1pr escribe d bythe Pr es i dentand s hal l be as uni form as pr act i cabl e. E ach c har ge s hal l be –

( 1) fai r ; and ( 2) bas ed on – ( A ) the cost s t o t he G overnm ent ( B ) t he val ue of the s ervi ce o r th in g to th e re c ip ien t; (C ) publi c po l i cyor i nter est s erved; and (D ) other r el evan tfact s. ( c) T h is s ect i on does notaff ecta l aw of the U nit ed S t at es – ( 1) pr ohi bi t i ng t he det erm i nat i on and col l ect i on of char ges and the di s pos i t i on of t hos e cha r ges ; and ( 2) pr es cri bi ng bas es fordet erm i ni ng char ges , but a char ge m aybe r edet erm i ned underthi s s ect i o n cons i s t entw i t h the p re s c ri b e d b a s e s .

7 s ubs equent l yfi l ed a f

i r st a m en ded compl ai ntt hat( 1) added nam ed p l ai nti ff D ebo rah Selt zer, (2) add ed the IR S as a d e f e n d a n t w ith re sp e c t to th e IO A A c laim , an d (3 ) ad d e d a c laim underS ec ti o n 1 of the Sherm an A nt i t rus tA ct , 15 U

. S. C

. § 1, agai ns tt he FFA M ember s , al l egi ng thatt he 2005 A gree m ent c on s t i tut e d a n i l l egal ho r i z on t a l a gr e e menta mongs tt he FFAIn it s M ay28, 2008 m emora ndum and or der , the 2 D istric t C o u r t d ism iss e d th e IO A A c laim o n lyw ith re sp e c t to FFA , butnot w it h respectt o t he I R S, w hi ch had noty et compl et ed i t s br i efi ng. T he I O A A cl ai m agai n st the I R S w as s ubs equent l ydi s m i s s ed i n an or derdat ed M ar ch 19, 2009. By e r s a r g u e d b e f

o r e t h e Di s t r i c t Co u r tth a th e rI OAA 3
c laim sh o u ld in f

a c t b e c o n stru e d a s a c laim se e k in g e q u itab le re m e d ie s u n d e r th e A d m in is tr a tiv e P ro c e d u re A c t, 5 U .S .C . § 702 ( “A PA ”)

. T he D i s t r i ct C our tr ej ect ed thatar gum ent , s t at i ng “I b eli ev e tha t C o u n t I o f th e F ir st A m en d ed C o m p lai n t i s m o re natur al l yr ead a s as s ert i ng a cl ai m underthe IO A A , nott he A P A .” A p p . at 7 7 n .6 6 . N o n e th e les s, th e D is tr ic t C o u rt h e ld t hat , t o t he ext entt hatB y er s di d as s ert cl ai m under t he A PA , “I concl ude that[B y er s ] cannots ue the [FFA M ember s ] underthe A PA , beca us e they ar e not ‘ agenc i es ’ w i t hi n t he m eani ng of the A P A .” A p p . a t 7 7

. 8 M ember s t o r es t r i ctoutpu t, w h ic h had the ef fec tof ca us i ng pl ai nt i ffs and the mem ber s of the pr opos ed cl ass t o pay “supracom peti t i ve p ri ces” for e- fi l i ng and rel at ed servi ces. O n M ay28, 2008, the D i s t r i ctC our ti s s ued a m e m o ra n d u m a n d o rd e r d is m iss in g th e IO A A c laim w ith pr ej udi ce pur s uantt o Fed. R

. C i v. P. 12( b) ( 6) , and di s m i s s i ng 2 t he Sherm an A ctcl ai m w i t h l eave t o amend. W i t h r es pectt o the I O A A cl ai m , t he D i s t r i ctC our thel d t hat : ( 1) t he I O A A does not apply to t he FFA M ember s , s i nce i tonl yappl i es t o a governm ent agenc yora pr i vat e ent i t yt as ked w i t h per form i ng an agenc y ’s s tat ut or yduty ; and ( 2) t he I O A A does notpr ovi de a pr i vat e r i ghtof ac t i on. 3Fort he s ake of conveni ence , “B y er s ” w i l l her ei naft er 4 b e u se d to re f

e r c o llec tiv e lyto n a m e d p lain tiff -a p p e llan ts S tac ie B y er s and D ebo rah Sel t zer , as w el l t he put at i ve cl as s t hey p u rp o rt to re p re se n t. 9 W ith resp ec t to th e S h erm an A ct claim , the D istri ct C o u rt hel d t hatal t hough t he C ei l i ng Pr ovi s i ons of the 2005 A gr eement do ha ve t he e ffect of

r e s t r i c t i ng c ompe t i t i on be t w e e n the FFA M em b ers in v iolati o n o f th e S h erm an A ct, the F F A M em b ers a re en ti tl ed to co n d u ct-ba sed im p li ed an ti tru st i m m u n ityan d are th e re f o re sh ield e d f

ro m a n titru st liab ili ty, sin c e th e ir a n ticompet i t i ve beha vi orw as r equi red byt he I R S pur s uantt o t he 2 0 0 5 A g re e m e n t. In so h o ld in g , h o w e v e r, th e D istric t C o u rt n o ted th a t it m aybe pos s i ble f

o r B y er s t o al l ege f

act s tr i gger i ng t he 4 e x c e p tio n to c o n d u c t-b a se d im p li e d a n titru st im m u n ity ar t i cul at ed byt he Sup rem e C o ur ti n O t t erT ai l Pow erC o. v. U ni t ed St at es , 410 U

. S. 366, 378- 79 ( 1973) , and ther eby r ei ns t at e t he vi abi l i t yof B y er s ’ Sher m an A ctcl ai m agai ns tthe F F A M em be rs. A s such, the D i stri ctC ou rtdis m i ssed B y ers ’ Sher m an A ctcl ai m w i t h l eave t o amend. By e r s f i l e d a s e c o n d a me n d e d c o mpl a i n t , whi ch cont ai ned al l of the al l egat i ons pr es enti n herfirst amended compl ai ntas w el l as s ever al par agr aphs i nt ended t o i nvoke the O tter T a il ex c e p tio n m e n tio n e d b yth e D istric t C o u rt. N everthel es s , on M ar ch 18, 2009, t he D i s t r i ctC our ti s s ued an or de rd i s mi s s i n g By e r s ’ Sh e r ma n Actc l a i m w i t h p r e j u d i ce p u rsua n t t o R u le 12 (b)(6 ), h o lding that B y ers ha d fa il ed to as sert s uffi ci ental l egat i ons t o i nvoke the O t t erT ai l exce pt i on , andT he D i s t r i ctC our thad j ur i s di ct i on pur s uantt o: 28 5 U

. S. C

. §§ 1331 , 1332, 1337( a) , 1346( a) ( 2) , and 1361, and 15 U

. S

. C

. § § 1 , 15, and 26. W e have appel l at e j ur i s di ct i on pur s uantt o 28 U

. S. C

. § 1291. 10 th e re f o re th a t h e r S h e r m a n A c t cla im f a ils d u e to th e c o n d u c tbased im pli ed an t i t rusti m m un i t yshi el ding t he F F A M em bers. O n t he fol l ow i ng day , M ar ch 19, 2009, t he D i s t r i ctC our ti s s ued an or derdi s m i s s i ng B y er s ’ I O A A cl ai m agai ns tt he I R S fort he s a me r e a s on s t ha ti tdi s mi s s e d he r I O A A c l a i m a ga i ns t t he FFA M em bers. B y er s t i m el yappea l ed the D i s t r i ct C o u rt ’ s di s m i s s al of h e r IO A A c laim s a g a in st th e F F A M e m b e rs a n d th e IR S , as w e ll a s the D i stri ct C ou rt ’s dis m i ssal of her S herm an A ctc laim againstt he F F A M em bers. 5 II. “O urs t andar d of r evi ew of the D i s t r i ctC our t ’ s di s m i s s al under R ul e 12(b) ( 6) i s pl enary . ” L or a- Pena v. F. B

. I

. , 529 F. 3d 503, 505 (3d C ir

. 2008)

. W e “a cce ptal l fac tual al l egat i ons as t rue, cons t rue the compl ai nti n t he l i ghtm os tfavor abl e t o t he pl ai nt i ff, and det erm i ne w hether , underany r eas onabl e r eadi ng o f th e c o m p la in t, th e p la in tif f m a yb e e n title d to re lie f.” G r amm arv. J ohn J

. K ane R eg ’l C tr s . – G l en H aze l , 570 F. 3d 520, 523 ( 3d C i r . 2009)

. I n addi t i on, W h i l e a c o mpl a i n ta t t a c k e d b ya Rul e 1 2 ( b ) ( 6) m ot i on t o di s m i s s does notneed de t ai l ed fa ctual al l egat i ons , a pl ai nt i ff’ s obl i gat i on t o pr ovi de the g rou n d s o f h is en ti tl em en t t o reli ef req u ir es m o reA s n oted a bo ve, see su pra n . 3, t o t he extentthat B y ers ’ 6 I O A A cl ai m agai ns tt he FFA M ember s w as as s ert ed underthe A PA , t he D i s t r i ctC our thel d thats uch a cl ai m fai l s beca us e the A PA does notappl y to the F FA M ember s , w ho ar e not

“ a g e n c ie s ” w ith in th e m e a n in g o f th e A P A

. 11 th a n lab e ls a n d c o n c lu sio n s, a n d a f o rm u laic re c itatio n o f th e e lem e n ts o f a c a u se o f a c tio n w ill n o t d o . F a c tu a l alle g a tio n s m u st b e e n o u g h to ra ise a rig h t to re lief

a b o v e th e sp e c u lativ e lev e l. B el l A t l

. C orp. v. T w om bly , 55 0 U

. S

. 54 4, 55 5 (200 7) ( ci t at i on s, q u o tat ion m ark s an d alt era ti o n s o m itted).

A . IO A A C la im ( 1) IOA A C l aim ag ainst

F F A Mem bers T he D i stri ctC ou rtdis m i ssed B y ers ’ IO A A cl ai m against t he FFA M ember s on tw o i ndepende ntgr ounds , hol di ng t hat : ( 1) th e IO A A d o e s n o t a p p lyto th e F F A M e m b e rs; a n d (2 ) th e re is n o e x p r e s s o ri mp l i e d p r i v a t e r i g h to f a c t i o n u n d e rth e I OAA. 6 Be c a u s e t h e Di s t r i c t Co u r t wa s c o r r e c ti n h o l d i n g t h a tt h e I OAA does not appl y t o t he FFA M ember s , w e w i l l aff i r m i t s di s m i s s al of t he I O A A cl ai m on thatgr ound, and nee d notr eac h the i s s ue o f w h e th e r a p ri v a te ri g h t o f a c tio n e x is ts u n d e r t h e IO A A

. T he I O A A pr ovi des , i n per t i nentpart , that“[t ] he hea d of eac h agenc y. . . m aypr es cr ibe reg ul at i ons es t abl i s hi ng the char ge for a servi ce or t hi ng of val ue pr ovi ded byt he agency .” 31 U

. S. C

. §9701( b) ( emphasi s added)

. Fr om t he pl ai n l anguage12 of the s t atut e, i ti s evi dentthat t he I O A A appl i es onl yt o ent i t i es th a t ar e c o n sid e re d to b e a n “ a g e n c y ” u n d e r th e sta tu te. In T itl e 31 of the U ni t ed St at es C ode, the t erm “age ncy ” i s defi ned as “a depart m ent , agenc y , ori ns trum ent al i t yof the U ni t ed St at es G o v ern m en t. ” 3 1 U

. S

. C

. § 1 0 1

. T h e F F A M em b ers , w h o are w hol l ypr i vat e ent i t i es , cl ear l y do not fi t w i t hi n t hi s defi ni t i on, a n d th u s th e IO A A is f

a c ia lly in a p p o s ite

. H ow ever , B y er s ar gues thatthe I O A A ’ s r eac h extends notonl yt o s ervi ces pr ovi d ed di r ect l ybya governm ent “age nc y , ” b u ta l s o t o p r i v a t e e n t i t i e s who p r o v i d e s e r v i c e s on b e h a lf o f a g o v e rn m e n t ag e n c yp u rsu a n t to a n a g re e m e n t w ith t ha ta ge nc y . A c c or di ng l y , By e r s a s s e r t s t ha ts i nc e t he FFA M e m b e rs p rov i ded e-fil in g se rv ice s p u rsu a n t to a g re e m e n ts w ith t he I R S— w hi ch i s cl ear l yan “a gency ” for I O A A purpos es

— t he IO A A there fo re ap p li es to the f ee s tha t th e F F A M em b ers charged for e-fi l i ng services provided to t axp ay ers . I n s uppor tof herpos i t i on, B y er s r el i es pr i m ar i l yon T h o m as v . N etw o rk S o luti o n s, Inc

. , 1 7 6 F

. 3 d 5 0 0 (D .C

. C ir

. 1 9 9 9 )

. I n T h o ma s , t h e D. C. Ci r c u i th e l d t h a twh i l e t h e I OAA t r adi t i onal l yappl i es onl yt o s ervi ces pr ovi ded d ir ect l yby governm entagenc i es , “[g] overnm entagenc i es cannotes cape r es pons i bi l i t yforfai l i ng t o per form t hei rs t atut orydut i es by hi r i ng pr i vat e part i es t o per form thos e dut i es , ” and thus , under c e rta in c irc u m sta n c e s, th e IO A A ’s r e a c h m a yb e e x ten d e d to enco m pass pri vate ent i t i es as w el l

. Id. at51 0. U nd er Th om as, t he I O A A appl i es t o a pri vat e ent i t y pr ovi di ng s ervi ces pur s uant t o an agr eementw i t h a governm entagenc y , but onl yi f: ( 1) the s ervi ces pr ovi ded bythe pr i vat e ent i t yar e s ervi ces thatthe age n cy i s s t atut or i l yr equi r ed t o pr ovi de; ( 2) the age ncy eff ect i vel ycontr ol l ed the pr i vat e ent i t y ’ s p rovi s i on of the13 se rv ice s a t issu e ; o r ( 3 ) th e se rv ice s p ro v id e d b yth e p riv a te ent i t yar e “qui nt es s ent i al governm ents ervi ce[ s ]

. ” I d. at510- 11. E xcepti on (

1) – S ervi ces P rovi dedby the P ri vate E n t i t y are Ser vi ces thatthe Agency is Stat ut or i l y Requi r ed to P r ovi de B y er s ar gues t hats i nce the FFA M em b ers w er e t as ked w i t h p e r f

o r mi n g t h e I RS’ s s t a tu t o r y d u t y , t h i s c a s e f a l l s under T h o m a s e x c e p t i o n ( 1 ) , a n d t h e I O A A t h e r e f o r e a p p l i e s . We cannot acc ept B y er s ’ ar gum ent s i nce she err oneous l yconfl at es th e s ta tu to ry d u ty d e le g a te d to th e IR S

— i.e ., c ol l e c t i ng and pr oc e s s i ng t a x r e turns

— w i t h t he s e r vi c e s pr ov i de d b ythe FFA M e m b e rs

— i.e ., pr e par i ng and f i l i ng the returns. 26 U

. S. C

. §§ 6011 and 6091 make cl earthatthe fi l i ng of t ax r etur ns i s t he sol e re s pons i bi l i t y of t he pr i vat e i ndi vi dual or ent i t yw ho i s m ak ing t he fi l i ng. M or eover , w hi l e §6011( f) pr ovi des that “[t ] he Secr et aryi s author i zed t o pr om ot e the benef i t s of and e ncour age the use o f el ectr oni c t ax a d m in istra tio n p ro g ra m s,” n o w h e re d o e s it sta te th a t th e IR S is obl i gat ed t o as s i s tt axpay er s w i t h the fi l i ng— el ectr oni c or ot herw i s e— of thei r t ax r eturns . R ather , t he t extm er el ypr ovi des t hat“a r etur n. . . s hal l be made t o t he Secre t ary . . . . ” I d. at §6091( b) ( 1) ( A ) ( emphasi s ad d ed). T he Secr et ary

— and by ext ens i on, t he I R S— has no s t atut ory duty w i t h r es pect t o t he p rep ara ti o n o r fil ing o f tax retu rns. R athe r, the IR S ’s o b l i g a t i o n s b e g i n o n l y af t er t he t ax r eturn i s actual l y“r eturn[ed]

. . . to th e S ec retary , ” id., w h ich tri g g ers th e IR S ’s s ta tu tory m andat e t o r evi ew t he r eturn and as s es s t he pr opert axes as di ct at ed byt he I nt ernal R evenue C ode. I d. at§6201. T he FFA M ember s , i n offe ri ng e- fi l i ng s ervi ces t o theForexampl e, w hi l e A r t i cl e V

. A

. of the 2002 A gr eement 7 s ta te s tha t “[t]he IR S w il l ho st an d m aintain th e W eb P ag e,” A rt icl e V

. C

. o f th e sa m e A g ree m en t pro v ides that “[ t] ax p ay ers w i l l be abl e t o us e [FFA M ember s ] ’ s oftw ar e t o pr epar e and el ectr o n i cal l yfi l e thei row n per s onal i ncome r eturns us i ng propri et ary processes and sy st em s w hich such P art i ci pan t s host and mai nt ai n. ” A pp. at226. T hes e tw o pr ovi s i ons i l l us t r at e the co- depende ntnatur e of t he A gr eement s , and bel i e anyar gum ent 14 publ i c, do notper form anyof t he t as ks s t atut or i l y as s i gned t o the I R S, butr athers erve the verys ame pr i vat e- s ect o r f u nct i ons as ac co u n tants (w h o aid w ith p rep ara ti o n o f return s) an d d eli v ery s ervi ces s uch as Feder al E xpr es s ( w h ich ai d w i t h the fi l i ng of re tu rn s). A s su c h , B y e rs h a s f a iled to sta te a v iab le I O A A c laim u n d er T h o m as e x ce p ti o n (1).

E x c e p tio n (2) – T

h e A g e n c y E ffec tive ly C o n tro lled th e P riv a te E nt i t y’s P r ovis i on of

the Ser vi ces A tI

s s ue W i t h r es pectt o T hom as exce pt i on ( 2) , B y er s cann ot s u s t a i n a n a r g u m e n tth a tt h e I R S e f f e c t i v e l y contr ol l ed

t he conductof the FFA M embe r s , s i nce By er s her s el f ac know l edges t hatdes pi t e the FFA M ember s ’ agr eementw i t h t he I R S, they w er e fr ee t o char ge w hat evertheys aw fi tforthei re- fi l i ng se rv ice s. S e e B r ie f

f o r A p p e llan ts a t 3 2 . M o re o v e r, th e p lain l anguage of the r ecor d i ndicates t hatt he r el at i ons hi p betw een th e IR S a n d th e F F A M e m b e rs w a s c o o p e ra tiv e a n d b ilate ra l in natur e, w i t h nei t her par t y exer ci s i ng “ef fec t i ve cont r ol ” overt he o ther. 7b yB y e rs th a t, un d e r th e A g re e m e n ts, th e IR S e f f e c ti v e ly con t rol l ed the FF A M em bers. Si nce w e w i l l aff

i r m the D i s t r i ctC our t ’ s di s m i s s al on 8 t hi s g rou n d , w e nee d notr eac h t he ques t i ons of w hethert he s ervi ce pr ovi ded byt he FFA M ember s cons t i tut es a “s ervi ce or t hi ng o f v a l u e ” u n d e r t h e I OA A, o r whe t h e r a p r i v a t e r i g h t of a c t i o n e x i s t s u n d e rt h e I OAA o rth e AP A. 15 E xcepti on (

3) – Th e Servi ces P rovi dedby the P ri vate En t i t y are Q uint essent i al G overnm ent Servi ces N o r d o e s T h o m a s excep t i on (3) su p p o rt B y e rs’ a rg u m e n t. T he s ervi ces offe r ed byt he FFA M ember s

— i

. e. , t he pr epar at i on and fi l i ng of t ax r etur ns

— ar e ac t i vi t i es t hathave a l w ay s been t he pr ovi nce of

t he pri vat e sec t or . I ndeed, r athert han pr ovi di ng a “qui nt es s ent i al governm ents ervi ce, ” the F FA M ember s i n fac t p r o v i d e a q u i n t e s s e n t i a l l y pri vate- sect or s e r v i c e . Ac c o r d H. R. R ep. N o. 107- 575, p. 38 ( 2002) ( “[T] he I R S s t at ed t hati tdi d not i n ten d t o en t er i nto the tax preparat i on soft w are busi ness; instead itinten d ed to w o rk in p artne rship w ith [p ri v ate] ind u stry t o expand the el ectr on ic f il ing of t ax r eturns . . . . T he C o m m i t t e e s t r o n g l yb e l i e v e s i n t h e [ p r i v a t e ] i n d u s t r y - I RS p artne rship co n ce p t .

. . ”).

* * * Si nc e t he I O A A i s fa c i a l l yi na pp l i c a bl e t o the FFA M ember s , and none of

the T hom as exce pt i ons appl y , t he D i s t r i ct C our tw as corr ect i n di s m i s s i ng B y er s ’ I O A A cl ai m agai ns tt he FFA M ember s pur s uantt o R ul e 12(b) ( 6) on t he ground thatthe IO A A do es not applyt o those enti t i es. 816 ( 2 ) IOAA cla i m ag a i n s tI

RS B y ers ’ I O A A cl ai m against t he I R S i s i den t i cal t o B y ers ’ c laim a ss e rte d a g a in st th e F F A M e m b e rs. S in c e , as w e n o te ab o v e, th e e -fil ing serv ices a t i ss u e in th is case are qu i nte ss enti al l ypri vate- sect or services , and t he IR S i s a q u in tes se n tial g o v e rn m e n t ag e n c y , the IO A A d o e s n o t ap p lyto t hi s cl ai m . See s upr a § I I ( A ) ( 1)

. M or eov er , nei t herar e the T hom as exce pt i ons , di s cus s ed i n t hats ect i on, appl i cabl e. T he I R S di d not exer ci s e cont r ol

— eff ect i ve or ot herw i s e— overthe p rov i si on of those ser vices , and accordingl y , the IO A A cl aim a g a in st th e IR S f

a ils a s a m a tter o f law

. T h e D istric t C o u rt d id noterri n di s m i s s i ng the I O A A cl ai m agai ns tthe I R S pur s uant to F ed

. R

. C iv. P. 12 (b)(6 ).

B . S h e r m a n A c t c la im T h e D istric t C o u rt d ism iss e d B y e rs’ S h e rm a n A c t cla im agai ns tt he FFA M embe r s pur s uantt o R ul e 12( b) ( 6) on the g r o u n d th a t B y e rs f

a iled to a ss e rt su f

f icie n t alle g a tio n s to es t a b l i s h t h a t t h e FF A M e mbe r s a r e n o t s h i e l d e d f r o m her Sher m an A ctcl ai m s undert he d o ctri ne of c onduct

- bas ed im p li ed an ti tru st i m m u n ity . B y ers a rgu es th at th e D istri ct C o u rt e rre d in ( 1 ) h o ld in g th a t th e F F A M e m b e rs a re e n tit led to conduct

- bas ed i m pl i ed ant i t rus t i m m uni t y , and ( 2) hol di ng that B y er s had fa i l ed t o as s ertsu ffi ci ental l egat i ons i n hers econd amended compl ai ntt o i nvoke the O t t erT ai l exce pt i on. (1) C o n d u c t-B a se d

Im p lied A n titru st Im m u n ity B y ers subm i t s that co n du ct -based i m pli ed an t i t rust im m u n ity is ac c o rd e d to p riv a te p a rties o n ly w h e n th e p r iv a te p a r t i e s a r e : ( 1 ) a c t i n g a tth e d i r e c t i o n o f a g o v e r n m e n ta g e n c y;S e e , e .g ., J e s P ro p e rt ie s , In c . v . U S A E q u e s tr ia n , In c ., 9 4 5 8 F .3 d 1 2 2 4 (1 1 th C ir. 2 0 0 6 ) (an titru st i m m u n ity a c c o rd e d to p riv a te e n tit ies w h o , p u rsu a n t to sta tu to rya u th o rity , en g a g e d in t he non- g o v ernm ent al act i vi t yof r egul at i ng eques t r i an comp eti ti o n s); N am e.S p ac e, Inc

. v . N etw o rk S o lut i ons , I nc. , 202 17 and ( 2) pr ovi di ng a “governm ents ervi ce. ” B r . forA ppel l ant s at 44- 46. T h us , ar gues B y er s , i f the D i s t r i ctC our tw er e i ndeed c orr e c ti n h ol di ng t ha tt he I O A A do es nota pp l yt o the FFA M ember s pur s uant t o T hom as beca us e t hey w er e notpr ovi di ng a “qui nt es s ent i al governme n ts e rv i c e , ” i tmus tn e c e s s a r i l yfol l ow t hat the F F A M e m b e rs are notenti t l ed to i m pli ed an t i t rust im m u n ity . In e ssen ce , B y ers co m p lai n s that the F F A M em b ers cannot“have t hei rcake and ea ti ttoo”— i f theyl os e on the I O A A i s s ue, t heym us tw i n on t he ant i t rus ti m m uni t yi s s ue— and t herefore cann ot em erge vi ct ori ou s on b oth coun t s. B y e rs’ lo g ic, h o w e v e r, is f a tally f law e d in th a t sh e f

a ils t o cit e anyauthori t yfor the p roposi t i on t hat i m pli ed an t i t rust i m m un i t y is a v a i l able t o p ri vate ent i t i es o n ly w hen the s ervi ce be i ng pr ov i de d i s “ go ve r nmen t a l ” i n na tur e . I nd e e d, a s the FFA M e m b e rs n o te, “ [ t]h e c a se s in th is a re a d e m o n stra te th a t [ in or dert o t r i gger i m pl i ed ant i t rus t i m m uni t y , ] t he s peci fi c na t ure o f a p riv a te e n tity ’s c o n d u c t need not be t he provi s i on of a
‘ governm ent al ’ f

unct i on , provided t he con du cti s di r ected by a fe der al agenc y , pur s uantt o a defi ned governm ent pr ogr am or p o l i c y . ” J o i n tOp e n i n g B r i e f o f Ap p e l l e e s I n tu i t , I n c . , H& R Bl o c k Ta x Di g i t a l So l u t i o n s , I n c . , a n d Fr e e Fi l e Al l i a n c e LLC at46, ( “B r . of FFA M ember s ”) ( s econd a nd t hi r d emp h ases added)

. Such i m m u n it yi s pr ovi ded t o a pr i vat e part yact i ng

9F .3 d 5 7 3 (2 d C ir. 2 0 0 0 ) (a n titru st im m u n ity a c c o rd e d to p riv a te e n tityth a t w a s c o m p e lled b yg o v e rn m e n t a g e n c yto e n g a g e in t he non- governm ent al s ervi ce of over s eei ng di s t r i but i on and m a n a g e m e n t o f in ter n e t “ d o m a in n a m e s” ); S a k a m o to v . D u ty Fr ee Shoppers, L t d. , 764 F. 2d 1285 ( 9th C i r . 1985) ( i m pl i ed a n titru st im m u n itya c c o rd e d to p r iv a te e n tityth a t en g a g e d in n o n -g o v e rn m e n tal s e rv ice o f se lli n g sp e c if

ied m e rc h a n d ise to t r avel er s atan ai rpor t ) ; C hampai gn- U rbana N ew s A gency , I nc. v. J

. L

. C um m i ns N ew s C o. , I nc. , 632 F. 2d 680 ( 7th C i r . 1980) (a n titru st im m u n itya c c o rd e d to d istrib u to r e n g a g e d in p riv a te a c tiv ityo f s e ll in g b o o k s a n d m a g a z in e s to th e A rm ya n d A ir F o rce E x ch an g e S erv ice). A s expl ai ned above , see s upr a § I ( A ) , the C ei l i ng 10 Pr ovi s i ons i ncl uded i n t he 2005 A gr eeme n t pr ovi ded that : ( 1) on l yt he 7 0% of the tax p a y i ng po pu l at i on w i t h the l ow est 18 ant i

- compet i t i vel y pur s uant t o an agr eementw i t h a governm ent a g e n c yw h e n : (1 ) th e g o v e rn m e n t ag e n c yis a c tin g p u r s u a n t to a c lea rlyd e f

in e d p o licyo r p ro g ra m ; a n d (2 ) th e p riv a te p a rtyis a c t i n g a t t h e d i r e c t i o n o rc o n s e n to f th e g o v e r n m e n ta g e n c y. W hethert he part i cul aract i vi tyi n quest i on i s of a pr i vat e or g o v e rn m e n ta l n a tu re is im m a te ri a l to th e a n a lysis

. I ti s cl eart hat t he I R S w as s t atut or i l yauthor i zed t o ent er i nt o t he 2002 and 2005 A gr eement s pur s uantt o t he R R A

. See R R A § 2 0 0 1 (a ) (m a n d a tin g th a t th e IR S “ sh o u ld c o o p e ra te w ith and encour age t he pr i vat e s ect or ” t o i ncr eas e e- fi l i ng)

. In addi t i on, t he C eil i ng Pr ovi s i ons i n t he 2005 A gr eement e x p re ss lyd ire c ted th e F F A M e m b e rs to re stric t th e a v a ilab ili ty o f f r e e e - f i l i n g s e r v i c e s u n d e rth e F r e e F i l e P r o g r a m. 10adj u ste d gr os s i ncome w as el i gi bl e t o r ece i ve fr ee e - fi l i ng s e r vi c e s fr om t he FFA membe r s ; a nd ( 2) no i ndi vi du a l FFA m em b er w as p erm itted to o ff er f ree e-f ilin g serv ices to m o re t han 50 % of all t axp ay ers . 19 S in c e b o th p ro n g s (1 ) a n d (2 ) o f th e sta n d a rd se t f o rth ab o v e a re s a tisf

ied, w e c o n clud e tha t th e F F A M em b ers a re e n tit led to c o n d u c t-b a se d im p lied a n titru st im m u n ityw ith r es pectt o t he ant i

- compet i t i ve ac t i on t aken pur s uantt o the C e ilin g P ro v is io n s o f

th e 2 0 0 5 A g re e m e n t. ( 2) O t t erTai lE

xce pt i on T he Supr eme C our ti n O t t erT ai l P o w er Co. v. U ni t ed St at es , 410 U

. S. 366 ( 1973) , es t abl i s hed an e xce p ti o n t o t he doctr i ne of i m pl i ed ant i t rus t i m m uni t y . O t t erT ai l hel d thateven w h e n th e c irc u m sta n c e s o th e rw ise d icta ted th a t a p riv a te e n tity w as ent i t l ed t o im p li ed ant i t rus ti m m uni t y , s uch pr ot ect i on w oul d not be acc or ded i f: ( 1) t he pr i vat e ent i t y had “i ns i s t ed” on ant i

- compet i t i ve r es t r i ct i ons i n i t s contr actw i t h a governm ent a g e n c y ; an d (2 ) th o se re s tr ic tio n s “ h in d e re d ” th e g o v e rn m e n t. See 410 U

. S. at379. S ince , as w e h o ld, se e su p ra § II( B )(1), the F F A M em b ers ar e otherw i s e ent i t l ed t o ant i t rus t i m m uni t y , forB y er s ’ Sher m an A ct cl ai m agai ns t t he FFA M ember s t o s ur vi ve, s he musts how t hat : ( 1) t he F FA M ember s “i ns i s t ed” upon t he ant i

- compet i t i ve C ei l i ng Pr ovi s i ons pr es ent i n t he 2005 A gr eement ; and ( 2) t hat th e se re stric tio n s “ h in d e re d ” th e g o a ls o f th e I R S ’s F re e F ile P r o g r a m. B y ers fai led to i nclude such al l egati on s i n h er fi rs t20 amended compl ai nt , l eadi ng t he D i s t r i ctC our tt o di s m i s s her Sher m an A ct cl ai m w i t h l eave t o amend, “s i nce [ B y er s ] m aybe able t o am end [her S herm an A ct cl ai m ] t o al l ege f act s that cas t d o u b t o n th e [ F F A M e m b e rs ] ’ c o n d u c t-b a se d [ a n titru st] im m u n ity.” A p p . a t 1 1 0

. In h e r se c o n d a m e n d e d c o m p lain t, B y e rs a ttem p ted to i nvoke the O t t erT ai l exce pt i on byi ncl udi ng t he fol l ow i ng paragraphs: T he I R S agr eed t o t he r es t r i ct i ons on fr ee s ervi ces o n lyat th e c o rpo rate d ef en d an ts’ i nsi s t ence , and t hos e r es t r i ct i ons w er e a hi nd r ance t o the I RS, esp eci al l yt he I R S’ s abi l i t yt o ful fi l l t he Pr es i dent ’ s M anage m entA genda a nd the E Z T ax F ili n g In iti a tiv e to p ro v id e f re e se rv ice s to a ll ci t i zens and t o pr om ot e el ec t r oni c fi l i ng i n an eff or tt o m eet i t s el ectr oni c fi l i ng goal s s etbyt he IR S R e s tru c tu ri n g a n d R e f o rm A c t o f

1 9 9 8

. [..

. ] T hus t he IR S agr eed t o t he r es t r i ct i ons on fr ee services on l yatt he co rporat e def end ants ’ i nsi s t ence , an d t hatt hos e r es t r i ct i ons w er e a hi ndrance t o the I R S. Forexampl e, i n the y ear f o llo w ing im plem entat i on of the 20 0 5 A g re e m e n t, par t i ci pat i on i n t he fr ee fi l e pr ogr am decr eas ed by 2 3 %. A p p . a t 4 9 2 -9 3 (e m p h a s e s a d d e d ). I n s uppor tof the s e al l egat i ons , B y er s appende d a 2006“The T I G T A i s an i ndepende nt , th i r d

- par t yaudi t orthat 11
r evi ew s I R S pr ogr ams and makes r ecom m endat i ons . ” A pp. at 17. B yl aw , eac h T I G T A r epor ti ncl udes a s ec ti on

12 cont ai ni ng t he I R S’ s r es pons e t o t he cont ent s of t he r epor t

. See Insp ec tor G en era l A ct of 1 9 7 8 § 5 (b), 5 U

. S

. C

. ap p . 3 (20 0 8 ). 21 r epor ti s s ued byt he Tre as ury I ns pect orG ener al forT ax A dm i ni s t r at i on ( “TIG T A ”) anal y zi ng t he 2005 A gr eement 11 betw ee n t he I R S and t he FFA M ember s , and al s o i ncl uded per t i nentpor t i ons of the T I G T A r epor ti n the bodyof hers econd amended compl ai n t. See A pp. at492- 93. T he cont ent s of the appende d T I G T A r epor ts uppor tB y er s ’ al l egat i ons t hat ( 1) t he C ei l i ng Pr ovi s i ons w er e inc l uded the 2005 A gr eementatt he i ns i s t ence of the FFA M ember s , and ( 2) t he C ei l i ng Pr ovi s i ons had the ef

fec tof hi nder i ng t he I R S’ s abi l i t y t o ful fi l l t he goal of th e F re e F ile P ro g ra m to in c re a s e e le c tr o n ic f ilin g . H ow e v e r, w h ile th e T IG T A re p o rt itse lf bu ttres ses B y ers ’ O t t er T ai l al l egat i ons , t he IRS ’ s “M anage m ent R es pons e” t o the rep o rt , w h ich w as in clud ed in th e 2 0 0 6 T IG T A rep o rt ’s

12 appendi x, s ee A pp. at 605- 08, di r ect l y r efut es t he s ubs t ance of tho se all eg ati o n s. A lth o u g h B y ers did no t ap p en d th e IR S ’s M anage m en t R es pons e t o hers econd a m ended c om pl ai nt , t he D istric t C o u rt w a s n o n e th e les s p e rm itt e d to c o n sid e r its c o n ten ts i n rul i ng on FFA M ember s ’ m ot i on t o di s m i s s , notw i t hs t andi ng t he gene r al rul e thata mot i on t o di s m i s s forfai l ur e t o s t at e a cl ai m i s t o b e evaluate d o n l yon t he co ntent s of t he p l eadings, s ee, e. g. , M el e v. Fed. R ese rve B ank of N ew Y or k, 359 F. 3d 2 5 1 , 2 5 7 ( 3 d Ci r . 2 0 0 4 ) , s i n c e : ( 1 ) By e r s a p p e n d e d t h e TI GTA22 reportt o h er com plai nt and qu oted atl eng t h f rom i t s content s, and the M anage m entR es pons e i s a s t atut or i l yr equi r ed partof the T IG T A rep o rt , see s u p ra n .1 2 ; and (2) the F F A M em b ers at t ached t he M anag em ent R espon se t o t heir m oti on t o d i sm i ss. See Sei nfel d v. B eche r er , 461 F. 3d 365, 367 n. 1 ( 3d C i r . 2006) ( ci t i ng I n r e D onal d J

. T rum p C as i no Sec. L i t i g. – T aj M ahal L itig ., 7 F .3 d 3 5 7 , 3 6 8 n .9 (3 d C ir . 1 9 9 3 ))

. A s n o ted b yth e D istric t C o u rt: A ccor di ng t o t he management ’ s r es pons e t o the T I G T A r epor t , t he I R S’ i nt entfort he i ni t i at i ve w as t o “pr ovi d[e] a basi c el ectr oni c fi l i ng opt i on f o r a lim ited tax p a y e r se g m e n t f ili n g sim p le r et u rns , ” w hi ch s ugges t s t hatt he I R S had a goal of r es t r i ct i ng t he s i ze of the popul at i on w hi ch the FFA w oul d s ervi ce a nd that r es t r i ct i ons w er e not ad d e d a t [ F F A M e m b e rs ]’ “ in s is te n c e .” A ddi t i onal l y , t he I R S st at ed tha ti tbel i eved that t he pr ogr am had “s ucce s s ful l y ful fi l l ed t he i nt ent o f th e in iti a tiv e .” T h is la n g u a g e stro n g lysu g g e sts th a t th e re s tr ic tio n d id n o t “ h in d e r” IR S p o lic y . [ ...] I n s hor t , acc or di ng t o t he I R S st at ementi n t he m anage m entr epor t , t he Fr ee Fi l e Progra m s u c c e s s f u lly m e t th e IR S ’ i n te n d e d o b je c tiv e s ....I ndeed, t he accur acy of t he D i s t r i ctC our t ’ s r eadi ng of 13 t he M anage m ent R es pons e w as ver i fi ed ator al ar gum entbythe at t or neyr epr es ent i ng the I R S, w h o s t at ed t o t he C our tthatthe

“ IR S d id w h a t it th o u g h t w a s b e st a n d m a d e th e p o licyc h o ice to h a v e [ a n ] in c o m e re stric tio n ” in th e 2 0 0 5 A g re e m e n t in o rd e r to “mai nt ai n[] t he vi abi l i t yof the [Fre e F i l e] A l l i ance ” and t her eby ful fi l l C ongr es s ’ di r ect i ve r egar di ng t he enc ou rag ementof ef ili n g . T ra n sc rip t o f

O ra l A rg u m e n t at 2 1

- 2 2 , B y e rs v . In tu it, I nc. , N o. 09- 1997 ( 3d C i r . N ov. 17, 2009)

. 23 A pp. at17- 18. 13 B y ers arg u es that sinc e the T IG T A rep o rtan d the IR S ’s M anage m entR es pons e “pr es entdi ffe r ence s of opi ni on r egar di ng w hetherornotchange s t o the 2005 A gr eement actual l yhi nder ed the i ni t i al and s t at ed goal s of t he IRS , ” B r . for A ppel l ant s at50, t his “ creat es a fa ctual di s put e r egar di ng w h e th e r t h e 2 0 0 5 A g re e m e n t h in d e r e d IR S ’s s ta te d g o a ls ,” re n d e ri n g th e S h e rm a n A c t c la im u n ri p e f o r d is m is s a l. I d

. W e do notagr ee. B yl aw , t he vi ew s expr es s ed i n the T I G T A r epor tdo notr efl ectoffi ci al I R S pol i cy , s ee I ns pect or G ener al A ctof 1978 § 3( c) , 5 U

. S. C

. app. 3 ( 2008) , w her eas the vi ew s expr es s ed i n t he M anage m entR es pons e do r efl ectt he offi ci al pol i cy and per s pect i ve of t he IRS

. I d. at§5( b)

. A s s uch, t h e c o n t r a d i c t i o n b e t wee n t h e TI GTA r e p o r t a nd t he M an ag em en t R esp o n se d o es n o t cre ate a fa ctua l dispu te; rathe r, t he I R S’ s offi ci al s t ance as art i cul at ed i n t he M anage m ent Re s p o n s e i s , u n d e rt h e l a w, t h e f i n a l wor d a s t o whe t h e rt he C ei l i ng Pr ovi s i ons w er e foi s t ed up o n the IRS atthe i ns i s t ence of the FFA M ember s , and w hethert heyhave pr oved a hi ndr ance24 to th e IR S ’s in s titu tio n a l g o a ls

. A ccor di ngl y , w e conc l ude as a m att erof l aw t hat

— not w i t hs t andi ng t he opi ni ons expr es s ed i n the 2006 T I G T A r epor t

— t he C ei l i ng Pr ovi s i ons i n t he 2005 A gr eement w e re n o t in c lu d e d a t th e in sis ten c e o f th e F F A M e m b e rs, n o r d id th e yh a v e th e e f

f e c t o f h in d e rin g th e g o a ls o f th e F re e F ile P r o g r a m. G i ven thatt he TIG T A r epor t d o es notr epr es entt he o ff ici al pol i cyof the I R S, and ther efor e ca nnotbe ac cept ed as t o “i ns i s t ence ” and “ hi ndr ance , ” al l t hatr emai ns i n s uppor tof B y er s ’ at t empt t o i nvoke t he O t t er T ai l exce pt i on i n hers econd amended compl ai ntar e herunadorned al l egat i ons regar di ng “i nsi st ence” and “hindrance. ” W hil e as a gen eral rul e w e m ust acc eptas true t he al l egat i ons cont ai ned i n a compl ai ntatt acke d by a 12( b) ( 6) m ot i on t o di s m i s s , G r amm ar , 570 F. 3d at523, “a pl ai nt i ff’ s obl i gat i on t o s t at e t he grounds of ent i t l ementt o r el i ef re q u ire s m o re th a n lab e ls a n d c o n c lu sio n s, a n d a f o rm u laic re c ita tio n o f

th e e le m e n ts o f

a c a u s e o f

a c tio n w ill n o t d o .” Tw ombl y , 55 0 U. S. a t 55 5 ( qu ot i ng Pa pa s a n v . A l l a i n, 47 8 U. S. 2 6 5 , 2 8 6 (1 9 8 6 )) (q u o ta tio n m a rk s a n d a lte ra tio n s o m itte d ). H er e, B y er s has i ncant ed the “i ns i s t ence ” and

“ h in d ra n c e ” e lem e n ts n e c e ss a ryto in v o k e th e O tte r T a il exce pt i on, s ee A pp. at492- 93, but

— as i de fr om appendi ng and quot i ng a w hol l yr efut ed sour ce— has otherw i s e fai l ed t o bol s t er heral l egat i ons w i t h s uffi ci ents u ppor t i ng fac t s t o s at i s fythe T w om bl ypl ead i ng s t andar d. See Phi l l i ps v. C ount yof A l l e g h e n y, 5 1 5 F

. 3 d 2 2 4 , 2 3 3 ( 3 d C i r . 2 0 0 8 ) ( “ A f t e rT w o m b l y, i ti s n o longe rs uffi ci entt o al l ege mer e el ement s of a c aus e of act i on; i ns t ead a compl ai ntm us tal l ege f act s s ugges t i ve of the25 pr os cr i bed conduc t

. ”) ( quot i ng T w om bl y , 550 U

. S. at 563 n. 8) (a lte ra tio n s a n d q u o ta tio n m a rk s o m itte d ). W i t ho ut the aid of the O t t er Tail excep t i on , B y ers ’ Sher m an A ctcl ai m agai ns tthe FFA M ember s i s for ecl os ed by t he c on du c t

- ba s e d i mpl i e d a nt i t rus ti mm un i t yt o whi c h the FFA M ember s ar e otherw i s e en ti tl ed. See s upr a § I I ( B ) ( 1)

. T he D i s t r i ctC our tt her efor e di d noterri n di s m i s s i n g the Sher m an A c t c la im p u rs u a n t to 1 2 (b )( 6 ).

( 3) N oer r - P enni ngt on T he FFA M ember s ar gue t hat even i f t heyare n ot s hi el ded fr om B y er s ’ Sher m an A ctcl ai m on the bas i s of i m pl i ed an ti tru st i m m u n ity, th eyare sti ll p rotec ted u n d er the N o errP enn i ng t on do ct ri ne, w hich i m m u n ize s pri vate part i es agai nst anti t ru s tl i abi l i tyba sed on the p et i t i on i ng of g ov ernm ent ent i t i es, even i f ther e i s an i m pr oper l yant i

- compe ti t i ve mot i ve or purpos e behi nd t he pet i t i on. W e have coge nt l ys um m ar i zed the N oerr -Penn i ng t on do ct ri ne as fo l l ow s: U n d e r th e N o e rr- P e n n in g to n d o c trin e , a p a rty w ho peti t i on s the g ov ernm ent for r edress g e n e r a l l y i s i m m u n e f r o m a n t i t ru s tl i a b i l i t y. P eti ti o n ing is im m u n e fro m li ab il ityev en if th ere i s an i m pr operpurpos e orm o ti ve. [.

. . ] T he i m m uni t yr eac hes noton lyt o pet i t i oni ng the leg isla tiv e a n d e x e c u tiv e branch es of g o v e rn m e n t, b u t th e rig h t to p e tit io n e x ten d s to a ll d e p a rtm e n ts o f t h e G o v e r n m e n t , i n c l u d i n g th e j u d i c i a r y. [ ...] A peti t i on er m aybe im m un e f ro m the an t i t rust26 i njur i es w hi ch r es ul tfr om t he pet i t i oni ng i t s el f. A lso , [

.. .] p a rties a re im m u n e f ro m liab ili ty ar i s i n g f r o m t h e a n t i t ru s ti n

j u r i e s c a u s e d by governm entact i on w hi ch r esult s fr om t he p eti t i oni ng. T her efor e, i f i t s conductcons t i tut es val i d pet i t i oni ng, the pet i t i oneris im m une fr om a n titrust l iabili tyw h ethe r or n o t th e inju ri es a re caus ed byt he ac tof pet it i oni ng orar e ca us ed by governm entact i on w hi ch r esult s fr om t he pet i t i oni ng. A

. D

. B edel l W hol es al e C o. , I nc. v. Phi l i p M orr i s I nc. , 263 F. 3d 2 3 9 , 2 5 0 -51 (3d C ir

. 2 0 0 1 ). T he D i s t r i ctC our thel d t hat w hi l e “[t ] he negot i at i ons that pr ece ded the 2005 A gr eement betw een [the F FA M ember s ] and t he I R S m aycons t i tut e val i d pet i t i oni ng t hatul t i m at el yr equi r es m e to d ism iss [the S h erm an A ct claim ] un d er the N o errP enn i ng t on do ct ri ne . . . I canno tcon si der evi den ce of t ho se negot i at i ons at t hi s t i m e beca us e s uch evi dence i s n ei t her m e n tio n e d in th e p le a d in g s n o r [ is ] a m a tte r o f [ p u b lic ] r e c o rd .” A p p . a t 9 8

. W e have expl ai ned the cont our s of a N oerr - Penni ngt on cl ai m s o t hatt he FFA M em b er s can be as s ur ed thatw e have g i ven recogn i t i on t o thei r N oerr -Penn i ng t on argum ent. H o w ev er, give n that w e w il l af firm the D istri ct C o u rt ’s d ism issal of

B y ers’ S h erm an A ct c la im , s ee su p ra § III (B )(1)- ( 2) , we f i n d n o n e e d t o d we l l o n o r f u r t h e r a d d r e s s t he FFA M em b ers’ N o err-P en n ing ton arg u m en t, w h ich, ev en if w e w ere t o a c c e p t i t , wo u l d i n a n ye v e n tl e a d t o th e s a me r e s u l tth a twe hav e al readyreached o n o t her groun ds.27 III . T h e Di s t r i c t Co u r t d i d n o t e r r i n d i s mi s s i n g By e r s ’ I OAA c laim s a g a in s t th e IR S a n d th e F F A M e m b e rs p u rsu a n t to 1 2 (b )(6 ), n o r d id it err in d ism iss in g B y e rs’ S h e rm a n A c t cla im a g a i n s tt h e F F A M e m b e r s p u r s u a n tt o 1 2 ( b ) ( 6 )

. A c c o r d i n g l y, w e w i l l aff

i r m t he j udgm ent s of the D i s t r i ctC our tdat ed M ay28, 2008; M ar ch 18, 2009; and M ar ch 19, 2009.