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Thomson Reuters Faces Antitrust Suit Over Casetext Shutdown
The Rubin Law Firm alleges that Thomson Reuters bought Casetext and dissolved the legal research service, leaving the firm with higher monthly rates. Thomson Reuters completed its $650 million acquisition in August 2023, saying the deal sup
AI.info Team · Written with AI ·
The Rubin Law Firm has accused Thomson Reuters of buying Casetext to remove a lower-cost rival to Westlaw, then dissolving the service and weakening competition in legal research. The proposed class action claims the acquisition left legal professionals with fewer options and pushed the firm into higher monthly rates. The complaint calls the transaction a “killer acquisition” intended to suppress competition, an allegation that has not been tested in court.
Rubin Law Firm Challenges the Casetext Deal
The suit centers on Thomson Reuters’ $650 million cash purchase of Casetext, completed in August 2023. Casetext offered AI-powered legal tools, including CoCounsel, which Thomson Reuters described at the time as an assistant for tasks such as document review, legal research memos, deposition preparation and contract analysis. The company said the acquisition supported its plan to expand generative AI products for professional customers.
Rubin Law Firm’s complaint presents a different account of the deal’s effect. It alleges Thomson Reuters acquired Casetext rather than continuing to compete with it, and describes Westlaw’s owner as an entrenched player with the power to blunt price competition. Bloomberg Law reported that the firm says the loss of Casetext forced it into significantly higher monthly rates.
The Complaint Puts Pricing at the Center
The complaint alleges that removing Casetext from the market weakened pressure on Westlaw’s pricing and left legal professionals with fewer lower-cost alternatives. Bloomberg Law reported that the suit is a proposed class action brought by Rubin Law Firm, which says its own monthly rates increased after Thomson Reuters acquired and dissolved Casetext.
Rubin Law Firm, the plaintiff, wrote in its complaint:
“This case targets a classic technology sector ‘killer acquisition’ executed by an entrenched duopolist with market power to suppress a disruptive upstart, eliminate downstream pricing discipline, and lock legal professionals into artificially inflated, supra-competitive pricing tiers.”
The quoted language describes the plaintiff’s allegations, not findings by a judge. The lawsuit will have to establish that Thomson Reuters’ conduct violated antitrust law.
A $650 Million Purchase With a Different Public Rationale
When Thomson Reuters announced the acquisition’s completion, it said Casetext had more than 10,000 law firm and corporate legal department customers. The company highlighted CoCounsel, powered by GPT-4, and said the purchase would help expand its generative AI offerings. That announcement provides the company’s stated rationale for the transaction; it does not address the antitrust allegations in the new complaint.
The lawsuit asks a court to examine the acquisition and Casetext’s dissolution through the lens of competition and subscription costs. The central question raised by the complaint is whether removing Casetext as an independent option harmed legal-research customers by reducing price pressure on Westlaw. For now, the case consists of allegations by Rubin Law Firm, including its claim that its own monthly costs rose after Casetext disappeared.