LexisNexis® Legal Newsroom
DOJ To Drop Antitrust Case If US Airways, American Give Slots To Low-Cost Carriers

WASHINGTON, D.C. - The U.S. Department of Justice (DOJ) on Nov. 12 proposed a final judgment with US Airways Group Inc. and American Airlines Inc. under which the DOJ would drop its merger antitrust lawsuit against the airlines if they divest slots and gates at key constrained airports across the country to low-cost carrier airlines (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Class Seeks OK To File Amicus Brief In DOJ's Antitrust Case Against Airline Merger

WASHINGTON, D.C. - The class suing US Airways Group Inc. and American Airlines Inc. in the U.S. District Court for the District of Columbia on Nov. 4 moved for permission to intervene in the U.S. Department of Justice's (DOJ) antitrust lawsuit against the airlines by filing an amicus curiae brief (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

6 Chambers Of Commerce: Merger Of US Airways, American Airlines Should Be Allowed

WASHINGTON, D.C. - Six chambers of commerce on Oct. 29 moved in the U.S. District Court for the District of Columbia for permission to file amicus curiae briefs in the antitrust lawsuit brought by the U.S. Department of Justice (DOJ) against US Airways Group Inc. and American Airlines Inc. related to the proposed merger of the two airlines. The chambers of commerce contend that their respective communities will benefit from the proposed merger (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Federal Judge Denies Injunction Request In Merger Dispute

HAMMOND, Ind. - A federal judge in Indiana on Oct. 28 denied a CFS Bancorp Inc. shareholder's request for a preliminary injunction to block the merger of CFS Bancorp Inc. and First Merchants Corp., finding that an injunction "would prevent the shareholder vote from being taken based on nothing more than unspecified misrepresentations or omissions causing unspecified misrepresentations" (Jay Orlando v. CFS Bancorp Inc., et al., No. 13-0261, N.D. Ind.; 2013 U.S. Dist. LEXIS 153917).

3 Airports, 1 City Say Merger Of US Airways, American OK, Seek To File Amicus Brief

WASHINGTON, D.C. - Three boards that govern the airports of various cities across the country, along with the City of Philadelphia, on Oct. 28 moved in the U.S. District Court for the District of Columbia for permission to file a single brief as amici curiae in the U.S. Department of Justice's (DOJ) antitrust lawsuit opposing the merger of US Airways Group Inc. and American Airlines Inc. (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Federal Judge Rules On Expert Testimony, Access In Merger Trial

BOISE, Idaho - The federal judge in Idaho overseeing the trial involving an antitrust challenge to a consummated merger between a hospital system and a physician group on Oct. 18 refused to exclude certain expert testimony regarding the impact of unwinding the merger and ruled that the Associated Press' counsel may review all trial material under the same obligation as counsel for the parties (Saint Alphonsus Medical Center - Nampa, Inc., et al. v. St. Luke's Health System, Ltd., No. 12-560, D. Idaho; Federal Trade Commission, et al. v. St. Luke's Health System, Ltd., et al., No. 13-116, D. Idaho; 2013 U.S. LEXIS 150450, 2013 U.S. LEXIS 150451).

Trial Order Proposed In American Airlines, US Airways Merger Antitrust Lawsuit

WASHINGTON, D.C. - Attorneys for the U.S. Department of Justice (DOJ), US Airways Group Inc. and American Airlines Inc. on Oct. 17 filed a joint proposed procedural order for the upcoming antitrust trial on the DOJ's claims that the proposed merger of the two airlines violates federal law. The proposed order calls for closing arguments to be held Jan. 6 (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Special Master Recommends That Discovery Requests In Airline Merger Case Be Denied

WASHINGTON, D.C. - The special master overseeing discovery in the U.S. Department of Justice's (DOJ) action seeking an injunction to prevent the proposed merger of American Airlines Inc. and US Airways Group Inc. recommended Oct. 10 that certain discovery requests be denied (United States of America, et al. v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Texas Attorney General Reaches Deal With American Airlines, Drops Antitrust Case

DALLAS - Texas Attorney General Greg Abbott on Oct. 1 announced that his office had reached a settlement with American Airlines Inc. regarding its proposed merger with US Airways Group Inc. and was dropping out of the lawsuit filed by the U.S. Department of Justice (DOJ), which opposes the merger on grounds that it violates federal antitrust law (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Securities Claims Against Auditor For Chinese Reverse Merger Company Dismissed

NEW YORK - Dismissal of a shareholder's securities class action lawsuit against a Chinese company's former auditor and the one of auditors former principals is proper because the shareholder failed to plead an actionable misrepresentation, scienter or loss causation, a federal judge in New York ruled Sept. 30 (In re China Organic Securities Litigation, No. 11-8623, S.D. N.Y.).

Airlines: DOJ's Antitrust Case Belies Claim That Prior Mergers Are 'Irrelevant'

WASHINGTON, D.C. - US Airways Group Inc. and American Airlines Inc. filed a joint brief in the U.S. District Court for the District of Columbia on Sept. 29, arguing that the U.S. Department of Justice (DOJ) "half-heartedly" asserts that factual assumptions related to previous airline mergers are "irrelevant"; however, the airlines contend that the DOJ's own complaint belies that assertion (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Clayton Plaintiffs Want AMR Bankruptcy Plan Changed To Protect Antitrust Claims

NEW YORK - A group of airline customers who sued bankrupt AMR Corp., the parent company of American Airlines Inc., alleging that the proposed merger of American Airlines and US Airways Group Inc. violates federal antitrust laws, on Sept. 27 filed a brief arguing that language in AMR's Chapter 11 reorganization plan should be changed in light of a potential settlement of the antitrust lawsuit filed by the U.S. Department of Justice (DOJ) (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

US DOJ: Discovery Sought By Airlines In Antitrust Merger Case Is Confidential

WASHINGTON, D.C. - The U.S. Department of Justice (DOJ) on Sept. 26 filed a brief opposing a motion by US Airways Group Inc. and American Airlines Inc. that seeks to compel production of certain documents in the government's antitrust lawsuit against the airlines. The DOJ argues that the airlines have "expressly declined" its offer to produce "basic factual materials collected in earlier investigations" related to other airline mergers (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Airlines In Antitrust Case Seek DOJ Documents Related To Other Mergers

WASHINGTON, D.C. - US Airways and American Airlines Inc., which are defendants in an antitrust lawsuit filed by the U.S. Department of Justice (DOJ) related to the proposed merger of the two airlines, on Sept. 20 moved in the U.S. District Court for the District of Columbia for an order compelling the DOJ to produce factual materials regarding the agency's prior approvals of other airline mergers (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Beer Purchasers' Antitrust Challenge To Acquisition Is Dismissed

SAN FRANCISCO - A federal judge in California on Sept. 19 dismissed claims by purchasers challenging Anheuser-Busch InBev SA/NV's (ABI) acquisition of the remainder of Grupo Modelo S.A.B. de C.V. that it does not own, finding that ABI's percentage share of the U.S. beer market will not be increased as a result of the merger and that there is no evidence of an agreement to fix prices (Steven Edstrom, et al. v. Anheuser-Busch InBEV SA/NV, et al., No. C 13-1309, N.D. Calif.; 2013 U.S. Dist. LEXIS 131386).

AMR, US Airways: DOJ's Antitrust Case 'Contrary To The Public Interest'

WASHINGTON, D.C. - Bankrupt AMR Corp. on Sept. 10 filed its answer to the U.S. Department of Justice's (DOJ) lawsuit in the U.S. District Court for the District of Columbia, arguing that its proposed merger with US Airways Group Inc. does not violate federal antitrust laws and contending that the DOJ's lawsuit ignores "the realities of the airline industry in the 21st Century" (United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

Antitrust Plaintiffs Say They Did Not Waive Claims Against Bankrupt AMR Corp.

NEW YORK - The group of airline customers referred to as the Clayton plaintiffs, who have filed an adversary proceeding against bankrupt AMR Corp., the parent company of American Airlines Inc., contending that its proposed merger with US Airways Group Inc. violates federal antitrust laws, filed a brief on Sept. 10 arguing that its counsel did not stipulate to a waiver as AMR contends (In Re: AMR Corp., No. 11-15463, Chapter 11, S.D. N.Y. Bkcy).

AMR: Deal Settling Antitrust Plaintiffs' Reorganization Plan Should Be Honored

NEW YORK - Bankrupt AMR Corp., the parent company of American Airlines Inc., on Sept. 9 filed a brief arguing that the group of airline customers that has filed an adversary proceeding against AMR alleging that the proposed merger of American Airlines with US Airways Group Inc. violates antitrust laws should not be permitted to object to the confirmation of AMR's Chapter 11 plan of reorganization (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.)

State Of Michigan Joins Suit Alleging American, US Airways Merger Violates Law

WASHINGTON, D.C. - The U.S. Department of Justice (DOJ), which is suing US Airways Group Inc. and American Airlines Inc. alleging antitrust violations related to their proposed merger, on Sept. 5 amended its complaint to add the State of Michigan as a plaintiff (In Re: United States of America v. US Airways Group Inc., et al., No. 13-01236, D. D.C.).

AMR Creditors Committee: DOJ's Trial Plan Would Worsen 'Harmful Uncertainty'

WASHINGTON, D.C. - The Official Committee of Unsecured Creditors (committee) in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., on Aug. 29 filed a brief in the antitrust lawsuit filed by the U.S. Department of Justice (DOJ) opposing the merger of US Airways Inc. and American Airlines, arguing that the DOJ's proposed trial schedule "would exacerbate harmful uncertainty" (United States of America v. US Airways Inc., et al., No. 13-01236, D. D.C.).

American Airlines, US Airways: Government Wrong; November Trial Date 'Reasonable'

WASHINGTON, D.C. - US Airways Inc. and American Airlines Inc. filed a joint reply brief I in the U.S. District Court for the District of Columbia on Aug. 28, arguing that the U.S. Department of Justice's (DOJ) motion to set a March trial date for the prosecution of its antitrust lawsuit opposing the merger of the two airlines would cause risk and harm to American Airlines' ability to emerge from Chapter 11 bankruptcy (United States of America v. US Airways Inc., et al., No. 13-01236, D. D.C.).

Government Says 6 Months Of Discovery Needed In American Airlines Antitrust Trial

NEW YORK - The U.S. Department of Justice (DOJ) on Aug. 27 filed a brief and a proposed scheduling order in its antitrust lawsuit seeking to prevent the planned merger of American Airlines Inc. and US Airways Inc., arguing that "given what is at stake," the district court hearing the case should allow both sides "a full opportunity" to develop evidence in discovery in preparation for a trial (United States of America v. US Airways Inc., et al., No. 13-01236, D. D.C.).

U.S. Attorney Seeks Injunction Blocking American Airlines Merger 'In Its Entirety'

NEW YORK - The U.S. attorney for the Southern District of New York on Aug. 23 filed a statement in the Chapter 11 bankruptcy of AMR Corp., the parent company of American Airlines Inc., seeking a permanent injunction blocking "in its entirety" the proposed merger of American Airlines and US Airways Inc. (In Re: AMR Corporation, No. 11-15463, Chapter 11, S.D. N.Y. Bkcy.).

FTC Settles Charges That Georgia Hospital Merger Is Anti-Competitive

WASHINGTON, D.C. - The Federal Trade Commission and the Hospital Authority of Albany-Dougherty County and Phoebe Putney Health System Inc. on Aug. 22 settled FTC charges that the acquisition of Palmyra Park Hospital harmed competition in six Georgia counties (In the Matter of Phoebe Putney Health System, Inc., et al., No. 9348, FTC).

Airline Customers: AMR Merger Should Not Be Confirmed While Lawsuits Are Pending

NEW YORK - A group of individuals who have already sued bankrupt AMR Corp. opposing its proposed merger with US Airways Inc. on antitrust grounds on Aug. 22 filed a brief arguing that the deal should not be confirmed while there is an additional antitrust lawsuit pending by the U.S. Department of Justice (DOJ) (In Re: AMR Corporation, No. 11-015463, Chapter 11, S.D. N.Y. Bkcy.).