United States and Plaintiff States v. Election Systems and Software, Inc. No. 10-cv-00380 (D.D.C. 2010)
The U.S. Department of Justice and nine plaintiff states filed suit against Election Systems and Software, Inc.’s (“ES&S”) acquisition of Premier Election Solutions, Inc. (“Premier”). ES&S, the largest provider of voting systems in the United States, acquired Premier, a subsidiary of Diebold, Inc. and the second largest provider of voting equipment systems. The acquisition was well under the HSR reporting thresholds. After this acquisition, ES&S provided more than 70 percent of the voting equipment systems used in elections held in the United States. The complaint alleged that because ES&S’s acquisition of Premier joined the two closest competitors in the provision of voting systems, it was likely that states and local governments would have seen higher prices and a decline in quality and innovation in voting equipment systems.
The states and USDOJ reached a settlement with ES&S under which ES&S will sell Premier’s intellectual property for all past, present and in-development voting equipment systems to another competitor. The buyer will have the ability to compete for contracts to install new voting systems using the Premier product. ES&S is prohibited for 10 years from competing for new
installations using a Premier product. The buyer will also receive copies of all existing
Premier service contracts so that it can compete for contracts that are up for renewals.
United States et al. v. Ticketmaster, No. 1:10-cv-00139(D.D.C. 2010)
U.S. and 17 states sued to enjoin merger of Ticketmaster, the nation’s largest ticketing services company, and Live Nation, the nation’s largest concert promoter.
According to the Complaint, the parties announced their merger shortly after Live Nation had entered the concert ticketing business as Ticketmaster’s closest competitor. The complaint alleged that consumers and major concert venues would
face higher ticket service charges as a result of the merger
The settlement requires the merging parties to license its ticketing software to Anschutz Entertainment Group (AEG). AEG is the nation’s second largest promoter and the operator of some of the largest concert venues in the country. The merging parties are further required to divest Ticketmaster’s entire Paciolan business, which provides a venue-managed platform for selling tickets through the venue’s own web site. Paciolan is to be divested to Comcast/Spectacor, a sports and entertainment company with a management relationship with a number of concert venues. Comcast also has ticketing experience through its New Era ticketing company.The settlement also prohibits the merging parties from retaliating against venue owners who contract with the merging parties’ competitors.
Richardson v. Akzo Nobel (In re Vitamins Antitrust Litigation), 1:09-cv-02112-TFH(D.D.C. 2009)
As part of a private class action lawsuit, states, as parens patriae for their citizens, reached a settlement with vitamin manufacturers accused of fixing prices on certain vitamins (The vitamins affected by this alleged price fixing conspiracy are: vitamin A,
astaxanthin, vitamin B1 (thiamin), vitamin B2 (riboflavin), vitamin B3 (niacin), vitamin B4 (choline chloride), vitamin B5 (calpan), vitamin B6, vitamin B9 (folic acid), vitamin B12 (cyanocobalamine pharma), betacarotene, vitamin C, canthaxanthin, vitamin E, and vitamin H (biotin), as well as all blends and forms of these vitamins) sold purchased between 1988 and 2000. This case is related to the case New York et al. v. Hoffmann-LaRoche, Inc.,et al. with different defendants.
Arizona ex rel. Goddard v. Gannett Co., Inc. (D. Ariz. 2009)
Two newspapers in Pima County sought to stop publishing one of the papers and share the profits on the other paper, pursuant to a change in their ongoing Joint Operating Agreement. Judge denied state’s request for TRO, on grounds that newspaper was a “failing firm.” State dismissed complaint.
Florida et al. v. Abbott Laboratories et al., No. 1:08-cv-00155-SLR (D.Del. 2007)
States alleged Abbott Laboratories; Fournier
Industrie Et Sante and Laboratoires Fournier, S.A., blocked competition from less expensive
generics by continuously making minor changes in the formulations of TriCor to prevent therapeutically equivalent generic substitutions. The states alleged that the product switches helped thwart generic competition, allowing the companies to charge monopoly prices for TriCor.
The lawsuit also allegd the companies used patents, which they obtained by deceiving the Patent and Trademark Office and improperly enforced and brought a series of patent infringement lawsuits against two generic companies. According to the complaint, Abbott and Fournier filed at least ten lawsuits against two generic companies who were attempting to obtain FDA approval for their generic versions of TriCor. Abbott and Fournier eventually lost or dismissed all of the lawsuits. As a result of the product switches and patent litigation, Abbott and Fournier have successfully thwarted generic competition and denied consumers and state agencies the choice of a lower priced therapeutically equivalent generic.
The states settled their claims for $22.5 milion, which covered governmental purchases, as well as injunctive relief to prevent “product hopping” by the defendants in the future.
Arizona v. Arizona Hospital and Healthcrae Association
Arizona and USDOJ alleged that hospital trade association fixed the price of nursing services from temporary nursing agencies as participaitng hospitals, which comprised 80 percent of hospital beds in Phoenix and Tucson. Inunctive relief prohibiting conduct and implementing compliance program.
State of Colorado et al v. Warner Chilcott, 1:05-cv-02182 (D.D.C.2005)
34 states filed suit alleging that Warner Chilcott entered into an illegal agreement with Barr Pharmaceuticals to raise the prices of Ovcon, an oral contraceptive. The lawsuit alleged that after Barr Pharmaceuticals publicly announced that it planned to have a generic version of Ovcon on the market by the end of the year, Warner Chilcott paid Barr Pharmaceuticals $1 million for an agreement designed to prevent Barr’s generic product from coming to market. Under the terms of the alleged agreement, once Barr received FDA approval to market generic Ovcon, Warner Chilcott had 90 days to pay Barr $19 million, after which Barr would refuse to bring the cheaper generic version to the market. The lawsuit alleged that as a result of the agreement, Warner Chilcott paid Barr a total of $20 million to keep it from marketing its generic version of Ovcon. In additon to a payment of $5.5 million, the settlement prohibits Warner Chilcott, for ten years, from entering into any agreement that would have the effect of limiting the research, development, manufacture, or sale of a generic alternative to one of its drugs. Furthermore, Warner Chilcott must provide the states notice of certain agreements it has entered into with generic manufacturers, and must continue to make its records available to the states for inspection to determine whether the company is complying with the terms of the agreement.
California v. Infineon Technologies, No. 3:06-cv-04333 (N.D. Cal. Nov. 7, 2007)
33 Plaintiff States generally alleged a horizontal price-fixing conspiracy in the U.S.
market for dynamic random access memory (“DRAM”), carried out by numerous manufacturer defendants. Samsung an
another company, Winbond, reached settlement for $113 million in 2007.. States and private parties settled with the remaining defendants for $173 million and injunctive relief.
New York v. Tele-Communications Inc., 1993 WL 527984 (S.D.N.Y. Sept. 14, 1993), 1993-2 Trade Cases P 70, 404
Defendant cable system operators, subsidiaries and a satellite cable supplier formed a monopoly in restraint of trade in the delivery of multichannel subscription television programming.
In the Matter of GlaxoSmithKline, PLC (Augmentin)
States alleged that GlaxoSmithKline fraudulently obtained patent protection for Augmentin and then delayed generic entry through sham patent litigation. Through this conduct, GlaxoSmithKline unlawfully maintained its monopoly over Augmentin. A $3.5 million multistate settlement for state proprietary claims was entered into by the participating states and GlaxoSmithKline.
