December Antitrust Bulletin

FTC Challenges Consummated Merger Approved by Bankruptcy Court

On Dec. 1, 2010, the Federal Trade Commission (FTC) challenged Laboratory Corp. of America's $57.5 million acquisition of Westcliff Medical Laboratories Inc., a rival clinical laboratory testing company, alleging that the transaction would harm competition in Southern California. The FTC brought this action even though the transaction had been approved by the bankruptcy court in connection with Westcliff's Chapter 11 proceedings. The case is the latest in a series of challenges to consummated mergers by the federal antitrust agencies, and serves as a reminder that even bankruptcy court approval will not prevent antitrust scrutiny of a transaction.