Judge Dismisses FTC Case Against Welsh Carson

US Policy and Regulatory Alert

On 13 May, a federal district court judge dismissed the Federal Trade Commission's (FTC) antitrust case against private equity firm Welsh, Carson, Anderson & Stowe and affiliated entities (Welsh Carson). This matter has been closely watched as a barometer of the courts' willingness to accept the FTC's theories of liability against private equity roll-ups. The FTC's case alleged that Welsh Carson, along with its portfolio company, US Anesthesia Partners, Inc. (USAP), engaged in an anticompetitive roll-up strategy to monopolize the market for commercially insured hospital-only anesthesia services in Texas. In dismissing the case against Welsh Carson, the judge rejected the FTC's contention that Welsh Carson, by virtue of its minority stake in USAP, was liable for USAP's alleged unlawful conduct. The decision shows that courts continue to check agency overreach as the FTC and the Department of Justice (DOJ) try to push the boundaries of