Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Government trials in acquisition challenges proceed as planned, (Oct 3, 2013)

By Jeffrey May, J.D.

Despite a partial government shutdown, two trials that just got underway in federal district courts involving government acquisition challenges are proceeding. The court actions, which started up on September 23, are moving forward, even though attorneys from the Department of Justice Antitrust Division and the FTC, on October 1, had sought for stays in their respective actions in light of the lapse of appropriations to the agencies.

The Antitrust Division is moving forward with its case against Bazaarvoice, Inc. over its 2012 acquisition of competitor PowerReviews, Inc. in the federal district court in San Francisco. In open court, the government’s motion for a stay in light of the shutdown was denied on October 1. The case is moving forward as planned, and Bazaarvoice has already begun its case in chief (U.S. v. Bazaarvoice Inc., Civ. C 13 0133).

Meanwhile, the federal district court in Boise, Idaho, is continuing to consider an action brought by the FTC, the State of Idaho, and complaining hospitals, challenging St. Luke’s Health System, Ltd.’s acquisition of Saltzer Medical Group—the largest physician practice in the state. The FTC moved for a stay in that action as well. Although the trial wrapped up for the week today, it is still scheduled to resume on Monday (St. Alphonsus Medical Center—Nampa, Inc. v. St. Luke’s Health System, Ltd., Case 1:12-cv-00560-CWD; FTC v. St. Luke’s Health System, Ltd., Case No. 1:12-cv-00560-BLW-REB, FTC File No. 121 0069).

The government also was unsuccessful in delaying the upcoming trial challenging the proposed merger of US Airways Group, Inc. and AMR Corporation, the parent company of American Airlines, Inc. The Antitrust Division’s motion for a stay of proceedings was denied on October 1. The trial is still scheduled to start November 25. The court said that a stay would delay the “necessary speedy disposition of this matter” (U.S. v. US Airways Group Inc., Case No. 1:13-cv-01236).

FTC administrative acquisition challenge. The FTC, on the other hand, stayed an administrative proceeding in the agency’s challenge to Ardagh Group S.A.’s proposed $1.7 billion acquisition of Saint-Gobain Containers, Inc. The stay will last for the duration of the shutdown and for an additional five business days thereafter (In the Matter of Ardagh Group S.A., FTC Dkt. No. 9356, FTC File No. 131 0087).

Companies: AMR Corp.; American Airlines, Inc.; US Airways Group, Inc.; Ardagh Group, S.A.; Bazaarvoice, Inc.; St. Luke’s Health System, Ltd.; Saltzer Medical Group P.A.

News: Antitrust AntitrustDivisionNews FederalTradeCommissionNews