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JUDGE SAYS INDIE RECORD STORES’ BIG-BOX SUIT TO PROCEED
Action Alleges Unfair Business Practices; Labels Also Named
An August, 2003 lawsuit brought by several independent record stores against Best Buy, Wal-Mart and other big-box retailers will be allowed to proceed, a federal judge in Los Angeles ruled yesterday.

A motion by the defendants, which also include the major record companies, to dismiss the case was denied by Judge Florence Marie Cooper, who indicated the retail plaintiffs had only to provide a simple statement of their claims and the grounds on which they rest at this point in the proceedings, according to a Bloomberg News report.

The plaintiffs--Mad Rhino Records, Boo Boo Records, Lou's Records, Dimple Records and Fingerprints—are reportedly seeking class-action status for their suit, which alleges that Best Buy and others wield their size with the labels to obtain unfair discounts, co-op money and other incentives not available to other retailers, while selling records for unfairly low prices.

California law states that products cannot be sold below cost.

The suit seeks a court order banning the special incentives to the retail giants, as well as damages.
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