Texas et al. v. Organon (Remeron), No. 04-5126 (D.N.J. 2004)
Plaintiff states settled with drug maker Organon USA, Inc. and its parent company, Akzo Nobel N.V., resolving antitrust claims involving the antidepressant drug Remeron between June 2001 and October 2004. The states’ complaint alleged that Organon unlawfully extended its monopoly by improperly listing a new “combination therapy” patent with the U.S. Federal Drug Administration. In addition, the complaint alleged that Organon delayed listing the patent with the FDA in another effort to delay the availability of lower-cost generic substitutes. The $26 million settlement resolved claims brought by state attorneys general, as well as a private class action brought on behalf of a class of end payors. Organon also agreed to make timely listings of patents and to submit accurate and truthful information to the FDA.
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.
Florida v. Champion Laboratories, No. 1:09-cv-02321 (N.D. Ill. 2009)
State filed against nine manufacturers of aftermarket auto filters, alleging a scheme to illegally fix prices, allocate customers and eliminate price competition since at least 1999. The suit alleges that high-level filter company executives conspired to maintain artificially high prices for
their companies� filters by agreeing among themselves to fix, increase, maintain and/or stabilize the prices of filters sold in the United States, in violation of state and federal antitrust laws and state consumer protection laws. The executives allegedly communicated about prices and even met with each other on numerous occasions, including at filter industry trade association meetings, to fix the prices and allocate customers and markets. The lawsuit further alleges the defendant companies used misleading information in letters seeking to justify their price increases. The suit seeks treble damages, injunctive relief and attorneys� fees and costs as well as civil penalties of up to $1 million per violation against each defendant. Private litigation is pending, USDOJ investigated but did not pursue case.
In re Marsh & McLennan
Plaintiff states alleged that Marsh, an insurance broker, made collusive arrangements whereby brokers entered into agreements with insurers to receive undisclosed compensation and engaged in anticompetitive conduct in the market for commercial liability insurance. March agreed to reveal all commissions paid, and to pay the states $7 million.
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.
Florida v. Travelers Companies, Inc. (Leon County Court)
Plaintiff states filed identical complaints and consent orders in their respective state courts. See case listings under other settling states. The complaint alleged that Travelers
participated in a bid rigging scheme in which broker Marsh & McLennan predesignated which insurance company’s bid would “win” a particular account. To create the appearance of a competitive bidding process, Marsh would instruct certain insurers to submit inflated, intentionally uncompetitive bids. These schemes gave commercial policyholders, including large and small companies, nonprofit organizations, and public entities, the impression that they were receiving the most competitive commercial premiums available, when they were actually being overcharged.
Additionally, Travelers was involved with a “pay-to-play” arrangement centered on their
payment of contingent commissions, in addition to standard commissions and fees, to insurance brokers. Contingent commissions, often undisclosed to consumers, provided an incentive for brokers to steer business to the insurer who offered the most lucrative contingent commissions, often in violation of their clients’ interests.
States settled for $6 million plus injunctive relief mandating disclosure of types and amounts of compensation.
Oregon v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
District of Columbia v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
Florida v. ACE Holdings, Inc.
Consent decrees filed by states in state court required $4.5 million payment and conduct relief to remedy alleged bid-rigging and false insurance quotes, as well as payment of secret “contingent commissions” to brokers.
