3 ms·

Has this ever worked in the past? I can't recall ever hearing of a merger being forcibly un-done. It seems like if you lie your way through the approval process

Has this ever worked in the past? I can't recall ever hearing of a merger being forcibly un-done. It seems like if you lie your way through the approval process and everyone's worst predictions come through, the worst that will happen is the US government will slap you with a monetary fine that amounts to less than 1% of your yearly profits.

hn_throwaway_99 3y ago
I thought this was an excellent question. It's easy to argue that the merger shouldn't have been approved, but seems like the plaintiffs want a time machine. Perhaps they're just looking for some sort of financial settlement? Has there ever been a similar suit against a large merger like this in the past, successful or not? I'm really curious how the legal system views these "please undo the past" requests.
- pasttense01 3y ago
  No, it's not the plaintiffs. If successful each subscriber might get a few dollars--while the plaintiffs' lawyers would get millions.
- anonymouskimmer 3y ago
  Historically through divestiture or rescission (the later is effectively impossible to do with a publicly held corporation). Though the Clayton Act has only been infrequently applied in recent decades. https://scholarship.law.cornell.edu/cgi/viewcontent.cgi?article=4184&context=clr https://scholarship.law.cornell.edu/cgi/viewcontent.cgi?arti...
cogman10 3y ago
> I can't recall ever hearing of a merger being forcibly un-done. That's pretty much what antitrust actions are. It's super rare and I can't imagine there's a case here against T-Mobile as both Verizon and AT&T are bigger.
ZoomerCretin 3y ago
It took a bit of searching, but yes! https://www.healthcarefinancenews.com/news/hospital-doctor-merger-undone-in-ruling https://www.healthcarefinancenews.com/news/hospital-doctor-m... Claude summary: A U.S. district court judge ruled in favor of the FTC in an antitrust case, ordering St. Luke's to undo its acquisition of the Saltzer Medical Group. The FTC and others alleged the acquisition violated antitrust regulations by lessening competition and potentially increasing healthcare costs. St. Luke's argued the acquisition was vital to achieve healthcare reform goals and maintain business viability. The judge disagreed, saying there are other ways to improve care without violating antitrust laws and risking increased costs. Here is an FTC press release detailing how the un-doing of the merger was carried out: https://www.ftc.gov/news-events/news/press-releases/2017/05/ftc-obtains-court-approval-divestiture-saltzer-medical-group-idaho-based-st-lukes-health-system https://www.ftc.gov/news-events/news/press-releases/2017/05/...
anonymouskimmer 3y ago
A trial court ordering a full divestiture of an acquired company (doorskin manufacturers): https://law.justia.com/cases/federal/appellate-courts/ca4/19-1397/19-1397-2021-02-18.html https://law.justia.com/cases/federal/appellate-courts/ca4/19... > the district court granted Steves and Sons' request to unwind the merger and plans to hold an auction for the merged assets after this appeal. Background of the case: https://www.natlawreview.com/article/fourth-circuit-affirms-divestiture-remedy-molded-door-market-merger-challenge https://www.natlawreview.com/article/fourth-circuit-affirms-...

hn_throwaway_99 3y ago

I thought this was an excellent question. It's easy to argue that the merger shouldn't have been approved, but seems like the plaintiffs want a time machine. Perhaps they're just looking for some sort of financial settlement? Has there ever been a similar suit against a large merger like this in the past, successful or not? I'm really curious how the legal system views these "please undo the past" requests.

pasttense01 3y ago
No, it's not the plaintiffs. If successful each subscriber might get a few dollars--while the plaintiffs' lawyers would get millions.
anonymouskimmer 3y ago
Historically through divestiture or rescission (the later is effectively impossible to do with a publicly held corporation). Though the Clayton Act has only been infrequently applied in recent decades. https://scholarship.law.cornell.edu/cgi/viewcontent.cgi?article=4184&context=clr https://scholarship.law.cornell.edu/cgi/viewcontent.cgi?arti...

cogman10 3y ago

> I can't recall ever hearing of a merger being forcibly un-done. That's pretty much what antitrust actions are. It's super rare and I can't imagine there's a case here against T-Mobile as both Verizon and AT&T are bigger.

ZoomerCretin 3y ago

It took a bit of searching, but yes! https://www.healthcarefinancenews.com/news/hospital-doctor-merger-undone-in-ruling https://www.healthcarefinancenews.com/news/hospital-doctor-m... Claude summary: A U.S. district court judge ruled in favor of the FTC in an antitrust case, ordering St. Luke's to undo its acquisition of the Saltzer Medical Group. The FTC and others alleged the acquisition violated antitrust regulations by lessening competition and potentially increasing healthcare costs. St. Luke's argued the acquisition was vital to achieve healthcare reform goals and maintain business viability. The judge disagreed, saying there are other ways to improve care without violating antitrust laws and risking increased costs. Here is an FTC press release detailing how the un-doing of the merger was carried out: https://www.ftc.gov/news-events/news/press-releases/2017/05/ftc-obtains-court-approval-divestiture-saltzer-medical-group-idaho-based-st-lukes-health-system https://www.ftc.gov/news-events/news/press-releases/2017/05/...

anonymouskimmer 3y ago

A trial court ordering a full divestiture of an acquired company (doorskin manufacturers): https://law.justia.com/cases/federal/appellate-courts/ca4/19-1397/19-1397-2021-02-18.html https://law.justia.com/cases/federal/appellate-courts/ca4/19... > the district court granted Steves and Sons' request to unwind the merger and plans to hold an auction for the merged assets after this appeal. Background of the case: https://www.natlawreview.com/article/fourth-circuit-affirms-divestiture-remedy-molded-door-market-merger-challenge https://www.natlawreview.com/article/fourth-circuit-affirms-...