Several States Contemplating Lawsuits to Prevent Express-Scripts/Medco Merger

more+
less-

Several States Contemplating Lawsuits to Prevent Express-Scripts/Medco Merger

by Dan Brecher

Several states, including New York, are said to be contemplating legal action to prevent Express Scripts Inc.’s proposed acquisition of Medco Health Solutions Inc. The $29.1 billion deal would create the largest U.S. pharmacy-benefits manager.

Section 7 of the Clayton Act specifically prohibits mergers and acquisitions when the effect “may be substantially to lessen competition, or to tend to create a monopoly.” The key question is whether the proposed merger is likely to create or enhance market power or facilitate its exercise. Issues like higher prices, fewer or lower-quality goods or services, or less innovation are often considered as well...

LOADING PDF: If there are any problems, click here to download the file.

Published In: Business Organization Updates, General Business Updates, Mergers & Acquisitions Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Daniel Brecher, Scarinci Hollenbeck | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »