Antitrust Law Daily Wrap Up, WORTH NOTING—Other Antitrust and Trade Regulation developments, (Dec 14, 2015)

A periodic roundup of other items of interest to the Antitrust and Trade Regulation community:

ACQUISITIONS & MERGERS NEWS: The FTC has issued a second request from Walgreens Boots Alliance, Inc. and Rite Aid Corp. in connection with Walgreens’ proposed acquisition of Rite Aid, according to a joint statement. The two companies announced the proposed $17.2 billion, all-cash transaction in October 2015. Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise. Rite Aid is one of the nation’s leading drugstore chains in the United States.

ACQUISITIONS & MERGERS NEWS: Washington, D.C. Attorney General Karl A. Racine has joined the FTC and Pennsylvania in a complaint that opposes the proposed merger between Staples, Inc. and Office Depot, Inc. The complaint, filed in the federal district court in Washington, D.C., claims that the merger, if consummated, would eliminate vital head-to-head competition between Staples and Office Depot. Racine, the FTC, and Pennsylvania seek a temporary restraining order and preliminary injunction prohibiting Office Depot and Staples from taking further steps to consummate the merger.

FRANCHISING & DISTRIBUTION NEWS: The U.S. Supreme Court today denied a hotel franchisee’s petition for review of a decision by the U.S. Court of Appeals in Chicago, which affirmed a district court’s denial of the franchisee’s motion to set aside a default judgment in a breach of franchise agreement case. The franchisee’s attorneys’ misfeasance did not justify reopening the judgment, the appellate court determined. In its petition, the franchisee asked: (1) whether abandonment by an attorney may provide a basis for relief in a monetary civil action under Federal Rule of Civil Procedure 60(b)(6); and (2) whether a client is obligated to diligently follow his own case when he is unknowingly relying on the misrepresentation of his attorney (Grover v. Choice Hotels International, Inc., Dkt. 15-443).

STATE UNFAIR TRADE PRACTICES NEWS: Pennsylvania Attorney General Kathleen G. Kane has filed a lawsuit against Chesapeake Energy Corp. and affiliates, alleging the companies violated the state’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) by engaging in a number of unfair and deceptive acts, including inducing landowners to enter into fracking leases through a bait and switch scheme; engaging in a self-dealing scheme; failing to disclose they were reducing landowners’ royalty payments; and failing to disclose revenues received that landowners were entitled to be paid royalties for. Kane seeks an order requiring the defendants to pay restitution to each person who suffered losses as a result of the deceptive acts and practices; civil penalties of $1,000 for each violation of the UTPCPL and $3,000 for each violation involving a person 60 years old or older; and a permanent injunction.

Companies: Choice Hotels International, Inc.; Walgreens Boots Alliance, Inc.; Rite Aid Corp.; Chesapeake Energy Corp.; Staples, Inc.; Office Depot, Inc.

News: AcquisitionsMergers Antitrust StateUnfairTradePractices FederalTradeCommissionNews