Maryland et al. v. Perrigo Company, No. 1:04CV01398 (D.D.C. Aug. 17, 2004)
The FTC and states alleged that the companies had entered into a “pay-for-delay” arrangement, whereby Perrigo paid Alpharma to withdraw its generic version from the market for Children’t ibuprofen.According to the complaint, in June 1998, Perrigo and Alpharma signed an agreement allocating to Perrigo the sale of OTC children’s liquid ibuprofen for seven years. In exchange for agreeing not to compete, Alpharma received an up-front payment and a royalty on Perrigo’s sales of children’s liquid ibuprofen. The FTC received $6.25 million to compensate injured consumers. The states received $1.5 million in lieu of civil penalties. the parties were enjoined from future agreements.
U.S. and Pennsylvania v. Sinclair Broadcast Group, Inc. (No. 14-cv-01186, D.D.C. 2014)
USDOJ and Pennsylvania filed suit to challenge the acquistion by Sinclair Broadcase Group of Perpetual Corporation, alleging that it would lessen competition in the sale of broadcast televlsion spot advertising in the south central Pennsylvania area. The merged companies would control 38 percent of the advertising market in that area. the parties agreed to the divestiture of a station in the marketing area.
Florida et al. v. Service Corporation International, No. A13CV1082LY (W.D. Texas Jan. 2, 2014)
SCI, the nation’s largest funeral home chain, sought to acquire Stewart Enterprises, another large funeral home chain. Seven states and the FTC entered into consent agreements with SCI specifying which funeral homes would be divested in 59 separate markets. In a separate consent agreement, SCI agreed to provide the state plaintiffs with the same notices, requirements for approval and compliance review as to divestitures and future acquisitions included in the FTC’s consent decree and to pay the state’s costs and attorneys’ fees..
U.S. and Plaintiff States v. US Airways Group et al., No. 1:13-CV-01236 (D.D.C. Aug. 13, 2013)
US DOJ and plaintiff states filed a complaint in federal court challenging the proposed merger between American Airlines and U.S. Airways. The complaint alleged the proposed merger would result in decreased competition, higher airfares and fees, reduced service and downgraded amenities. The dollar impact nationwide could exceed $100 million a year. The merger would make a combined U.S. Airways/American Airlines the largest worldwide carrier and reduce the number of the larger “legacy” airlines from four to three – U.S. Airways/American, United/Continental and Delta/Northwest – and the number of major airlines from five to four. If the merger were approved, the three remaining legacy airlines combined with Southwest Airlines would account for more than 80 percent of domestic travel. American Airlines is U.S. Airways’ chief competitor in the marketplace, meaning that the merger will likely only serve to increase fares and fees. Texas settled its case, entering into an agreement under which the merged airlines would maintain their operations at Texas airports, maintain DFW as a hub, and maintain its corporate headquarters in the Dallas area. DOJ and the remaining states reached settlements with the merging parties. The settlement requires US Airways and American to divest or transfer to low cost carrier purchasers approved by the department: 1) All 104 air carrier slots (i.e. slots not reserved for use only by smaller, commuter planes) at Reagan National and rights and interest in other facilities at the airport necessary to support the use of the slots; 2) Thirty-four slots at LaGuardia and rights and interest in other facilities at the airport necessary to support the use of the slots; and 3) Rights and interests to two airport gates and associated ground facilities at each of Boston Logan, Chicago O’Hare, Dallas Love Field, Los Angeles International and Miami International. The settlement reached by the states requires maintenance of existing hubs in those states, consistent with their historical operations, for three years, and continued daily service for five years to each airport in the affected states that American and US Airways serviced at the time of filing.
Commonwealth of Pennsylvania v. Geisinger Health System Foundation et al., No. 1:13-cv-02647 (M.D. Pa. Oct. 25, 2013)
State challenged merger of two hospitals that would have reduced competition in two Pennsylvania counties. Hospitals agreed to settlement.
Commonwealth of Pennsylvania v. Geisinger Health System Foundation et al., No. 4:CV-12-1081 (M.D. Pa.
State alleged that the the acquisition of Bloomsburg Hospital by Geisinger Heath System Foundation may substantially lessen or eliminate competition in the region. Geisinger is a non-profit parent of four hospitals, including its flagship Geisinger Medical Center which is located only 10 miles from Bloomsburg Hospital. It also owns the Geisinger Clinic, a multi-specialty physician group practice with more than 900 primary care and specialty physicians and the Geisinger Heath Plan. Geisinger is one of the largest providers of inpatient acute-care hospital services in northeastern Pennsylvania. The state was concerned that Geisinger would be able to raise prices for hospital and physician services to Columbia County residents and their health plans. The parties reached a settlement under which Geisinger agreed to continue to operate Bloomsburg Hospital as an acute care hospital for eight years, six years longer than the term agreed to by the parties. The agreement also requires that all physicans with privileges at Bloomsburg Hospital will keep their privileges. The original merger agreement with the Bloomsburg Board only protected certain physicians. Geisinger also agreed to negotiate and contract with health plans for Bloomsburg Hospital separately from Geisinger Medical Center. Bloomsburg Hospital historically had lower rates than Geisinger Medical Center. By contracting separately, Bloomsburg’s rates will be comparable to other community hospitals, not a large tertiary hospital like Geisinger.
Pennsylvania v. Geisinger Medical Center, No. 344 MD 2011 (Pa. Comm. Ct. July 26, 2011)
State challenged merger on the grounds that it could lessen competition for primary or secondary acute care hospital services sold to Medicare plans and primary and non-tertiary physician services in Northumberland County, PA.
U.S. and Plaintiff States v. AT&T, No. 11-01560 (D.D.C, 2011)
AT&T sought to acquire T-Mobile. The transaction would have combined two of the only four wireless carriers with nationwide networks. US DOJ and six states filed suite to block the merger. The parties abandoned the merger three months later.
Pennsylvania v. Twin Ponds, Inc., No. 2010-CV-11677 (Ct. Comm. Pleas, Dauphin Cty Penn. Sept. 10, 2010)
Two ice skating rinks operated in the Harrisburg Pennsylvania area. The owners entered into an agreement under which one ice house would melt its ice and provide only indoor roller skating and indoor soccer services. State filed suit, charging market allocation and violation of the prohibition against monopolies. Settlement included permanent injunction voiding market allocation agreement and restrictive covenant that prevented property from being used as a skating rink. Defendants paid $65,000, to be used as a settlement fund to support youth hockey in Dauphin County and to reimburse the state for its costs.
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.