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.
US, Illinois, Iowa and Missouri v. Tyson Foods, No. 1:14-cv-01474, D.D.C. Aug. 27, 2014)
USDOJ and three states challenged the acquisition of Hilshire by Tyson. According to the complaint, Tyson and Hillshire compete against each other and against others to
procure sows from farmers in the United States. Tyson’s proposed acquisition of Hillshire would eliminate head-to head
competition between the companies and create a firm that would account for over a
third of all sows purchased from farmers in the United States. the merging parties agreed to divest all the assets of Heinold Hog Markets, including 8 buying stations, to a purchaser approved by USDOJ, after consultation with the states.
Oklahoma v. Neway Valve Co., No. CJ-2014-1482 (Okla. Dist. Ct. Mar. 18, 2014)
Defendants used pirated software to design valves for oil field services industry, competing with Oklahoma companies that also designed valves for the oil industry. State filed suit claiming violations of the state’s consumer protection and antitrust laws, based on unfair methods of competition. The state sought injunctive relief, disgorgemetn and damages.
U.S. and State of Texas v. Martin Marietta Materials, Inc.
USDOJ and State of Texas challenged the acquisition of Texas Industries by Martin Marietta Materials on the grounds that the proposed merger would have likely resulted in increased prices for customers handling Texas Department of Transportation projects in parts of the Dallas metropolitan area. The
Texas Department of Transportation sets specifications for the type of aggregate approved for use in those projects. In Dallas County and parts of the surrounding area,
Martin Marietta and Texas Industries are two of the only three suppliers of Texas Department of Transportation-approved aggregate. Under the terms of the proposed consent decree, Martin Marietta must divest its North Troy aggregate quarry in Mill Creek, Oklahoma, its rail yard in Dallas, and its rail yard in Frisco, Texas. All of these assets
predominantly serve parts of the Dallas metropolitan area. Under the proposed settlement, USDOJ Antitrust Division, after consultation with Texas, must approve the buyer of the divested assets.
Oregon v 3M and SPM Settlement Agreement
The settlement resolved allegations that the companies engaged in illegal and anticompetitive practices related to bids for highway pavement marking contracts on State of Oregon projects. The state alleged that 3M, a manufacturer of pavement striping tape, and SPM, a striping contractor, exchanged information regarding bids, coordinated bids, allocated projects and provided false certifications. As a result, the state alleged that competition was reduced and the government received less advantageous terms for the purchase and installation of roadway marking products. The companies denied wrongdoing. The settlement required 3M and SPM to pay a combined $750,000 to the State of Oregon. An additional $750,000 was made available as a credit to the Oregon Department of Transportation for a total of $1.5 million. The companies also agreed to refrain from conduct that could substantially lessen competition and to provide the Department ongoing certification of compliance.
In re North Shore Health System and Long Island Jewish Hospital
State and two hospitals agreed that the merged hospitals would, for a period of five years, pass on $100 million of cost savings to consumers, in the form of new or incremental services, including early detection and screening, increasing services to underserved populations, improvements of health care delivery. the hospitals also agreed to freeze hospital list prices for both inpatient and outpatient services for two years. Annual reports are to be submitted to the attorney general.
United States and Texas v. Cinemark Holdings et al., No. 13-727 (D.D.C. 2013)
United States and Texas challenged $220 million acquisition by Cinemark of Rave Holdings. Cinemark is the third-biggest movie chain in the U.S., with 298 theaters in 39 states. Rave Holdings owns 35 theaters in 12 states and specializes in digital and 3-D presentations, According to the complaint, the proposed acquisition would reduce competition in the Voorhees-Somerdale area of New Jersey and the eastern section of Louisville, where Cinemark and Rave are each other’s chief competitors. Cinemark and Rave operate theaters in the western region of Fort Worth. In addition, if the acquisition were to go through as originally planned, the theaters would be less likely to improve or maintain the quality of their sound systems, screens, and food and drinks. Cinemark agreed to divest Movie Tavern Inc. — a Dallas company operating 16 theaters in Fort Worth and Denton, Texas — and three additional Texas theaters to settle the suit.
Florida v. NSK Ltd.
State alleged price-fixing in the market for automotive ball bearings, including bearings used throughout the automobile, from 2000 to the present. The defendants control 75 percent of the market, and entry is not easy. Several of the defendants entered guilty pleas to criminal charges brought by USDOJ.
Investigation Concerning an Agreement Between Competing Pharmaceutical companies to Not challenge Each Other’s sole first to file Exculsivity, Assurance No. 14-034 (Feb. 19, 2014)
State challenged an agreement between two generic pharmaceutical makers under which they agreed not to challenge the exclusivity of any of the other party’s pharmaceuticals (pursuant to the Hatch-Waxman Act). The parties agreed to drop that provision and not enter into a similar provision with other generic manufacturers
