A federal district court has ordered a defendant in private
antitrust litigation to divest a manufacturing plant following a
competitor's merger challenge. Although the decision is certain
to be appealed, it may embolden customers or competitors wishing to
challenge a transaction and create new risks for merging
parties.
In 2012, Jeld-Wen acquired Craftmaster International, a
competing manufacturer of household door components. In 2016, just
before the four-year statute of limitations had run, Steves &
Sons ("S&S") sued Jeld-Wen, its competitor and
supplier, and alleged that the Craftmaster acquisition violated the
Clayton Act. S&S sought treble damages and equitable
relief.
Although the Justice Department had twice investigated and twice
declined to challenge the acquisition, the court permitted S&S
to proceed to trial and prohibited both parties from telling the
jury about DOJ's investigations.
