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32 State Attorneys General Ask The Supreme Court To Overturn The Second Circuit's Legal Standard Governing Reverse Payments

Posted  02/28/11
In January, 32 state attorneys general filed an amicus brief in the U.S. Supreme Court, urging the Court to hear and overturn Arkansas Carpenters Health and Welfare Fund v. Bayer AG (In re Ciprofloxacin Hydrochloride Antitrust Litig.), 05-2851-cv(L) (2d Cir. 2010) (“Cipro”).  In Cipro, the Second Circuit affirmed its legal standard governing so-called "reverse payments," which are payments by a brand name drug...

Accountable Care Organizations, Unaccountable To Antitrust Law?

Posted  02/23/11
The Affordable Care Act provides for the creation of Accountable Care Organizations (“ACOs”), organizations of healthcare providers that agree to be held accountable for the cost and quality of care provided to Medicare beneficiaries.  Beginning in January 2012, Medicare will reward ACOs for meeting certain benchmarks set by the Secretary of Health and Human Services.  As a result, many healthcare providers that...

Lightening Strikes: In A First, NY Electric Company To Give Up Profits In Antitrust Settlement

Posted  02/22/11
A judge in the Southern District of New York has approved a settlement agreement between the Department of Justice and KeySpan Corporation (“KeySpan”) in which KeySpan agreed to disgorge $12 million of profits for alleged violations of Sherman Act Section 1.  KeySpan was once the largest seller of electricity generating capacity in New York City and is owned by National Grid, which purchased it in 2007. The...

Antitrust Stock Set To Rise? Governments To Review Massive Stock Market Merger

Posted  02/17/11
The parent company of the New York Stock Exchange, NYSE Euronext, has agreed to merge with Deutsche Boerse, the operator of the Frankfurt stock exchange.  In an all-stock deal worth more than $10 billion, Deutsche Boerse will own a majority 60 percent of the new company, and NYSE Euronext shareholders will own 40 percent.  The merger, if approved, would create the world’s largest financial exchange operator and...

Ninth Circuit Gives Supermarkets Coupon For Second Bite At The Antitrust Apple

Posted  02/16/11
California’s largest supermarkets will have another chance to argue that actions they took in response to a labor strike did not violate antitrust laws.  This second bite at the apple comes courtesy of the Ninth Circuit which, on February 11, granted an en banc hearing to reconsider the initial panel’s decision against the supermarkets. In the case, California sued the state’s three largest supermarkets:...

Package Deal By FedEx And UPS?

Posted  02/9/11
According to media reports, the DOJ Antitrust Division is investigating accusations that UPS and FedEx colluded to freeze third-party shipping consultants out of the their shipping businesses.  The reports indicate that Justice has opened an investigation into possible collusion between FedEx and UPS, the two largest companies in the package shipping world. This investigation would come on the heels of a private...

Electronic Payments 2011: The Winds of Change / A Call to Action

Posted  02/9/11
CC Attorneys W. Stephen Cannon, Richard O. Levine
Steve Cannon and Richard O. Levine participated on a panel of the 2011 Hospitality Law Conference concerning recent legal and regulatory developments affecting the relationship between merchants and payment card networks.  download PDF

Swiss Giant ABB Engineers Takeover Of Baldor Electric With Avalanche Of Cash

Posted  02/8/11
The Antitrust Division of the U.S. Department of Justice has given the green light to Swiss engineering giant ABB’s multi-billion-dollar acquisition of the American industrial motors firm Baldor Electric Co. This regulatory approval paves the way for ABB’s $4.2 billion, or $63.50 per share, all-cash purchase.  The purchase price was a 41% premium over the November 29, 2010, $45.11 closing price of Baldor...

FTC Revises Filing Thresholds For Antitrust Review

Posted  02/7/11
The FTC has voted unanimously to approve a Federal Register notice announcing revised thresholds for the Hart-Scott-Rodino Antitrust Improvements Act. The Hart-Scott-Rodino Act requires persons contemplating certain large mergers or acquisitions to notify the FTC and the Assistant Attorney General, and to wait a designated period of time before consummating such transactions.  The threshold for reporting proposed...

DOJ Tells Lucasfilm To Turn Away From The Dark Side

Posted  02/3/11
The U.S. Department of Justice’s crusade against anticompetitive employment practices at high-tech companies continues, this time with a settlement with Lucasfilm Ltd. In a complaint filed with the settlement in federal district court in Washington, D.C., the DOJ alleges that Lucasfilm agreed with Walt Disney’s animation studio, Pixar, as far back as 2005, that neither company would solicit each other’s...
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