Closing the Umbrella? Two Recent Second Circuit Decisions Address (and Reject) So‐Called Umbrella Liability Claims

In late 2021, the Second Circuit issued two decisions—In re American Express Anti‐Steering Rules Antitrust Litigation (“Amex Rules”)1 and Schwab Short‐Term Bond Market Fund v. Lloyds Banking Group (“Schwab Bonds”)2—that closely analyzed and rejected so-called “umbrella” liability claims. As discussed below, these two decisions illuminate the narrow path plaintiffs face in asserting umbrella claims particularly in the Second Circuit.