The Antitrust Week In Review
Here are some of the developments in antitrust news this past week that we found interesting and are following.
U.S. senator expresses concern about ag tech mergers. Two major mergers in agricultural technology and seeds could hurt competition in the industry and make it harder for smaller companies to compete, Senator Charles Grassley, chairman of the Senate Judiciary Committee, wrote in a letter on Wednesday sent to antitrust enforcers. Grassley, a Republican from Iowa, urged the Federal Trade Commission, which is reviewing the purchase of Syngenta AG by the China National Chemical Corp, and the Justice Department, which is looking at the merger of Dow Chemical Co and DuPont Co, to coordinate on the two reviews.
Aetna warned it would cut Obamacare if Humana deal was blocked. Aetna Inc warned in July that it would exit much of the individual Obamacare health insurance market if the government challenged its deal to buy rival Humana Inc, according to a letter it sent to the U.S. Department of Justice. The public release of the letter came after Aetna said that it would pull out of selling individual insurance on the government-run websites in 11 states, citing financial losses on the business. The Justice Department moved on July 21 to block Aetna’s acquisition of Humana and Anthem Inc’s purchase of Cigna Corp after an antitrust review, saying the two deals would lead to higher prices.
Utah Firm That Finds Distant Heirs Accused in Antitrust Case. Federal prosecutors filed an antitrust case Wednesday against a Salt Lake City-based company that’s part of a little-known industry specializing in tracking down heirs to unclaimed inheritances. Kemp & Associates Inc. and executive Daniel Mannix are accused in an indictment of conspiring with other companies for more than 14 years so they wouldn’t have to compete with each other. Prosecutors contend that strategy unfairly drove up prices for the heirs.
Judge trims reverse payment claims against Endo, Impax over Opana. A federal judge has trimmed state law claims brought by health plans in a class action lawsuit claiming that Endo Pharmaceuticals Inc paid a rival drugmaker to delay the launch of a generic version of Endo’s painkiller Opana ER, forcing the health plans to pay higher prices by preventing competition. U.S. District Judge Harry Leinenweber in Chicago on Thursday dismissed unjust enrichment claims brought by the health plans against Endo and rival Impax Laboratories under Illinois and Rhode Island law, saying that those states do not allow indirect purchasers such as health plans to recover damages for antitrust injuries.
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