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Nov 07, 2022

The Antitrust Agenda: Republican Senators Take Aim at ESG Initiatives on Eve of Elections; Open Markets’ Lynn Says Attention on Amazon Following DOJ Win vs. Book Publisher Merger

GOP senators warn law firms about clients’ possible ESG antitrust violations. Senate Republicans warned law firms about “possible antitrust violations” that their “clients may commit if they pursue Environmental, Social and Governance (ESG) initiatives.” The firms and their clients “should preserve documents relevant to the clients’ ESG practices in preparation for Congress’s oversight of antitrust […]

Nov 07, 2022 Read Now >
Nov 02, 2022

Kroger/Albertsons: Companies Have Overlap of More Than 1,400 Stores; Khan Highly Critical of Failed Supermarket Divestitures

Kroger’s (KR) planned $24.6 billion acquisition of rival grocer Albertsons (ACI) would result in common control of more than 1,400 closely competing stores absent divestitures, according to a Capitol Forum analysis. Past reviews of grocery mergers by the FTC have centered on economic analyses of local markets where store overlaps would result in a substantial […]

Nov 02, 2022 Read Now >
Oct 18, 2022

Assa Abloy/Spectrum Brands: The Merging Parties are Unlikely to Offer Divesture that Moves the Needle with DOJ

Assa Abloy (ASSA-B:SS) confirmed last week that the company has taken initial steps to sell its Emtek lock brand and smart residential business in the U.S. and Canada to oppose DOJ’s challenge to its $4.3 billion bid for the hardware and home improvement (HHI) division of Spectrum Brands (SPB). DOJ dismissed this proposal as a […]

Oct 18, 2022 Read Now >
Oct 18, 2022

Healthcare Policy: DOJ Sues Cigna Over Medicare Advantage Risk Score Adjustments; Alleged Practices Similar to Those Uncovered in Reporting About Oak Street Health and Signify Health

Yesterday, the Department of Justice announced that it had filed a civil lawsuit against Cigna (CI) alleging that the insurer defrauded the Medicare Advantage program out of tens of millions of dollars. The allegations raised by the government are similar to those uncovered by The Capitol Forum in its reporting on Oak Street Health (OSH), […]

Oct 18, 2022 Read Now >
Oct 18, 2022

Flagstar Bancorp/New York Community Bancorp: When FDIC Rebuffed Merger Bid, Banks Restructured Deal So OCC Would Review It

Federal Deposit Insurance Corporation (FDIC) staff members were so concerned about fair lending failings at Flagstar Bancorp (FBC) that they told executives at New York Community Bancorp (NYCB) that they wouldn’t support their proposed $2.6 billion acquisition of the company, according to sources familiar with the matter. The agency’s rebuff came early this year after […]

Oct 18, 2022 Read Now >
Oct 17, 2022

Coordination Out Loud: Analysis of Public Statements from Fertilizer Industry Executives

Coordination Out Loud: Analysis of Public Statements from Fertilizer Industry Executives Special Note: Coordination Out Loud is a series of articles that analyze select corporate transcripts through the lens of Joseph Harrington’s landmark paper, “Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition.” The paper concludes that antitrust enforcers can be more […]

Oct 17, 2022 Read Now >
Oct 13, 2022

CFPB September Complaint Data: Credit Acceptance Sees 8% Month-Over-Month Increase in Complaints, Some Complaints Allege Potential Violations of SCRA; ENOVA Sees a Number of Complaints and Recent California Decision Could Negatively Affect Business

The information contained in this report is compiled from the CFPB’s publicly available complaint data. The agency uses complaint information to monitor risk in financial markets, assess risk at companies, and prioritize agency action. The Capitol Forum’s compilation of the data also includes information about complaints submitted by servicemembers and seniors. Credit Acceptance Corporation. Subprime […]

Oct 13, 2022 Read Now >
Oct 13, 2022

Microsoft/Activision Blizzard: Deal Opponents Underscore Google Stadia Shutdown While Xbox Maker Can Point to Netflix Game Expansion

As regulatory concerns in the U.S. and Europe persist about Microsoft’s (MSFT) proposed $68.7 billion Activision Blizzard (ATVI) acquisition, two developments that occurred late last month—Google shuttering its Stadia service and Netflix’s deepening commitment to video-game development—spur polarized views about whether the transaction is anticompetitive.  The software giant will no doubt argue that Netflix’s decision, […]

Oct 13, 2022 Read Now >
Oct 12, 2022

Sino Biopharm/F-Star Therapeutics: U.S., UK Coordinate National Security Reviews of Controversial Deal

The Committee on Foreign Investment in the United States (CFIUS) and the UK’s Department of Business, Energy and Industrial Strategy (BEIS) are coordinating their national security reviews of the proposed purchase of Britain-based F-Star Therapeutics (FSTX), a company linked to research of monoclonal antibodies’ use as a Covid-19 treatment, by a Sino Biopharmaceutical (HK:1177) subsidiary, […]

Oct 12, 2022 Read Now >
Oct 10, 2022

Standard General/Tegna: Sources Say Pelosi-Pallone Letter Provides Political Cover for Rosenworcel to ‘Pocket Veto’ Deal

House Speaker Nancy Pelosi and Energy and Commerce Committee Chairman Frank Pallone, Jr., raised concerns about Standard General’s $8.6 billion bid for broadcast station group Tegna (TGNA). In an October 6 letter to FCC Chairwoman Jessica Rosenworcel, the two Democrats asked the FCC to closely scrutinize the deal to ensure it meets FCC’s public interest […]

Oct 10, 2022 Read Now >
Oct 10, 2022

FTAI Infrastructure: Drag on Freight Revenues Likely Amidst US Steel Idling Facilities

Energy and transportation company FTAI Infrastructure (FIP) will likely see lower revenues this quarter amid a cut to steel and tin production from its largest freight customer, US Steel (X), according to a Capitol Forum investigation. https://www.argusmedia.com/en/news/2376811-us-steel-idles-mon-valley-blast-furnaceWhile the newly formed company disclosed risks associated with customer concentration, its only earnings report filed to date does […]

Oct 10, 2022 Read Now >
Oct 07, 2022

Procept Biorobotics: UnitedHealthcare Community Plan Policies Reiterate No Coverage for Aquablation, Indicating Procedure is Unproven and Not Medically Necessary Due to Insufficient Evidence of Safety and Efficacy

Last week, UnitedHealthcare (UNH), the largest insurer in the country, published updated coverage determinations for three Community Plan Medical Policies in New Jersey, Kentucky, and Tennessee. The updated determinations did not include coverage for the prostate treatment known as Aquablation, which the policy documents found to be “unproven and not medically necessary due to insufficient […]

Oct 07, 2022 Read Now >
Oct 05, 2022

The Beauty Health Company: Company Faces Undisclosed Competition for Consumable Serums; Company’s Allegedly Anticompetitive Practices Face Tying Allegations in Court, Nominative Fair Use Arguments from Spas

The Beauty Health Company (SKIN) produces devices and serums for facial treatments at spas and dermatology clinics, with the Hydrafacial system being its flagship brand. While the company commands a high price for the Hydrafacial system and equipment, the consumable serums, boosters, and single-use tips used during facials provide a significant source of recurring revenue […]

Oct 05, 2022 Read Now >
Sep 30, 2022

Pediatrix: Storm Clouds Loom over Enforceability and Deterrent Effect of Company’s Physician NonCompete Agreements

Pediatrix Medical Group (MD), the leading neonatology and specialty pediatric care staffing company, relies on noncompete agreements with physicians and nurse practitioners that bar them from working at a competing practice in a geographical area after leaving the company. The agreements have historically acted as a strong deterrent to clinicians leaving, effectively shackling clinicians to […]

Sep 30, 2022 Read Now >
Sep 29, 2022

Postal Policy: Express One Seeks Injunction Preventing Termination of Reseller Contract; Company Files Unredacted Contract

Postage Reseller Express One earlier today filed for a temporary restraining order and preliminary injunction preventing the USPS from terminating the Shipping Services Contract the parties entered into in December 2019. The termination is set to become effective after Friday September 30, 2022, according to Express One’s motion. Express One also sued the USPS on […]

Sep 29, 2022 Read Now >
Sep 23, 2022

Amazon/iRobot: Deal Raises Concerns at Center of 1967 Supreme Court P&G Case

Amazon’s (AMZN) proposed $1.7 billion acquisition of iRobot (IRBT) has sparked fevered debate over the 21st century fear of Big Tech’s data collection inside the home. But the deal’s critics also have raised concerns that are similar to those at the center of a 55-year-old Supreme Court decision that forced Procter & Gamble (PG) to […]

Sep 23, 2022 Read Now >
Sep 22, 2022

FleetCor: FTC’s Proposed Order Seeks to Ban Company’s Fee Practices

The FTC is seeking a court order for permanent injunction and other relief against FleetCor (FLT) and its CEO Ronald Clarke that would prohibit some of the practices the company has relied on to generate hundreds of millions in improper fee revenue from small businesses that use its fuel cards. If granted, the order is […]

Sep 22, 2022 Read Now >
Aug 25, 2022

Microsoft/Activision: After CMA Issues Meeting, Trouble May be Brewing in London; EC Remedies Questions In Flux as EC Leans Towards Blocking Illumina/Grail Merger

The UK’s Competition and Markets Authority is said to have held an “issues meeting” with Microsoft (MSFT) in which the authority outlined the competition concerns it sees with the company’s proposed $68.7 billion acquisition of video game publisher Activision Blizzard (ATVI). It’s not clear what was discussed at the meeting, though the CMA is said […]

Aug 25, 2022 Read Now >
Aug 23, 2022

DuPont/Rogers: Parties Face SAMR Impasse, Unrelenting Industry Concerns, as Initial 180-Day Review Expires

China’s antitrust review of DuPont’s (DD) proposed $5.2 billion acquisition of Rogers Corporation (ROG) has hit an impasse as the companies haven’t yet resolved stiff industry concerns with their deal, sources familiar with the matter said. That’s led to case handlers at the State Administration for Market Regulation (SAMR) making very little progress in their […]

Aug 23, 2022 Read Now >
Aug 19, 2022

ZoomInfo: Company Sold Personal Phone Numbers of EU Citizens Without Consent After Saying It Does Not Sell Personal Data; Practice Likely Violates GDPR, According to Experts, and Undermines Company’s Lawful Basis for Operating in EU

Citizens of European countries subject to the General Data Protection Regulations are having their personal mobile phone numbers processed and sold without their consent by ZoomInfo (ZI), an aggregator of business-related contact information, according to a Capitol Forum investigation. This practice likely violates several provisions of the GDPR, according to privacy experts and lawyers, and […]

Aug 19, 2022 Read Now >
Aug 16, 2022

Adtalem Global Education: Department of Education Initiates DeVry Recoupment Action; Company Likely on Hook for Borrower Defense Claims

The Department of Education announced that yesterday it formally notified DeVry that the institution is liable to the Department for nearly $24 million for approved borrower defense claims, according to a press release. The notice is an initial demand that relates to DeVry Direct Loan borrowers whose loan discharges are in process with their servicers. […]

Aug 16, 2022 Read Now >
Aug 15, 2022

UnitedHealth/Change Healthcare: Economists Battle Over Whether Deal Would Increase Incentives to Access Claims Data

Two economists today argued over whether UnitedHealth Group (UNH) would be more likely to mine valuable health insurance claims data if the company completed its proposed $7.8 billion Change Healthcare (CHNG) acquisition. This morning in federal court, Kevin Murphy, a University of Chicago economics professor, said UnitedHealth is a vertically integrated company with a good […]

Aug 15, 2022 Read Now >
Aug 11, 2022

JetBlue Airways/Spirit Airlines: Spirit CEO’s Post-Announcement Interview Foreshadows Deal’s Uphill Antitrust Climb

JetBlue’s (JBLU) proposed $3.8 billion acquisition of Spirit Airlines (SAVE), which the companies formally inked on July 28 after a months-long takeover dance, faces an uphill climb to close given the carriers’ overlaps on dozens of highly-concentrated U.S. city-pair routes and a Biden administration hellbent on preventing anticompetitive consolidation in air travel markets. In fact, […]

Aug 11, 2022 Read Now >
Aug 10, 2022

JPMorgan Chase Avoided Public Punishment From CFPB Under Trump After Discovery of Alleged Fake Accounts

JPMorgan Chase Bank (JPM) avoided public sanctions during the Trump administration for allegedly creating fake accounts when the Consumer Financial Protection Bureau (CFPB) opted to quietly close the matter instead, according to sources familiar with the matter, adding yet another major institution to a list of those accused of opening accounts without customer consent. The […]

Aug 10, 2022 Read Now >
Aug 08, 2022

Privacy Policy: Third-Party Businesses that Engage in Data Collection for Cross-Contextual Advertising May Have to Alter Practices Under CPRA, Experts Say

The draft regulations of the California Privacy Rights Act contain various provisions that are designed to limit the sharing of consumers’ personal data with third-party companies that do not directly interact with consumers, according to privacy experts interviewed by The Capitol Forum. The provisions are likely to negatively affect businesses like Zeta Global (ZETA), Dun […]

Aug 08, 2022 Read Now >
Aug 08, 2022

FirstCash: California Regulator Takes Action Against Four Technologies for Operating Without License; Levitin Opines that California Retail Installment Sales Agreements Resemble Direct Loans and Loans are Unconscionable

American First Finance, a point-of-sale consumer finance and rent-to-own company recently acquired by payday lender FirstCash (FCFS), operates in California without a nonbank lending license because the company has determined its retail sales installment agreements do not constitute a loan and are exempt from state usury and licensing laws. But the Commissioner of the California […]

Aug 08, 2022 Read Now >
Jul 21, 2022

Mergers Face New Uncertainties in China as SAMR Rolls Out Online Filings and Delegates Power to Regional Offices

China’s antitrust authority is preparing to introduce a new online merger-filing system and other measures that could subject deals such as MaxLinear’s (MXL) $3.8 billion buyout of Taiwan’s Silicon Motion Technology (SIMO) to longer reviews and heightened uncertainty, people familiar with the matter said. The State Administration for Market Regulation (SAMR) has been testing the […]

Jul 21, 2022 Read Now >
Jul 20, 2022

EOG Resources: Expanded Drilling Efforts in Utica Oil Window, Company Returns to Appalachia in Positive Signal for Activity in the Region

Marking a return to the region after its 2020 exit, oil and natural gas explorer and producer EOG Resources (EOG) is ramping its drilling program and increasing its acreage on the edge of the Utica Basin’s oil window in Ohio, according to a Capitol Forum investigation. Companies like EOG tend to keep development activity discreet, […]

Jul 20, 2022 Read Now >
Jul 19, 2022

Illumina/Grail: EC Probe Set to Resume With New Remedy Offer On Table

The European Commission is set to resume its in-depth probe of Illumina’s (ILMN) takeover of cancer-detection test maker Grail in short order, with the Brussels-based regulator expected to seek third-party feedback on a revised set of concessions offered by Illumina, The Capitol Forum has learned. The commission paused the review more than five months ago […]

Jul 19, 2022 Read Now >
Jul 15, 2022

AdaptHealth: Consolidation of Acquired Businesses Left Patients with Decreased Access to Oxygen and Forced Workers to Violate Federal Safety Regulations to Make Deliveries

AdaptHealth (AHCO), a distributor of durable medical equipment, has a strong appetite for purchasing local and regional competitors, acquiring over 90 medical suppliers over the last four years. These acquisitions and the resulting efforts by the company to cut costs, however, can often leave patients without reliable and frequent deliveries of necessary equipment like oxygen. […]

Jul 15, 2022 Read Now >
Jul 13, 2022

Continental Grain-Cargill/Sanderson Farms: DOJ Officials, Companies Negotiating Remedies to Safeguard Workers; Suit to Block Deal Still Possible

DOJ’s concerns about Cargill’s $4.5 billion joint venture with Continental Grain’s Wayne Farms to buy Sanderson Farms (SAFM) have spawned negotiations between senior department officials and the companies over remedies to safeguard wages and conditions post merger for poultry industry workers, particularly farmers, sources familiar with the matter said. The discussions are fluid and DOJ […]

Jul 13, 2022 Read Now >
Jul 12, 2022

Agencies See Uptick in Reverse Clearance Battles Amid Resource Constraints, Heightened Workloads

The U.S. antitrust agencies are increasingly fighting reverse clearance battles in which—rather than seeking to gain authority to investigate particular mergers—they’re instead pushing their sister enforcement agency to review the transactions, sources familiar with the matter said. That’s a stark change from traditional practice at the FTC and DOJ’s antitrust division, which typically fight to […]

Jul 12, 2022 Read Now >
Jul 12, 2022

Drug Patents May Draw Fire as DOJ Dusts Off Section 2 of Sherman Act, Experts Say

America’s top patent and pharmaceutical regulators took a joint stand against pricey prescription medication last week, agreeing to work together to keep drugmakers from using “incremental” patents to impede the release of cheaper versions of their products. But their initiative might prompt an even stronger response at the DOJ, where staff attorneys could now be […]

Jul 12, 2022 Read Now >
Jul 11, 2022

Privacy Policy: California Starts Formal Rulemaking Process to Implement CPRA; Regulations as Proposed Enhance Consumer Protections and Do Not Exempt Business Information

On Friday, the California Privacy Protection Agency initiated the formal rulemaking process to adopt proposed regulations implementing the Consumer Privacy Rights Act of 2020 (CPRA), which amend and expand upon the California Consumer Privacy Act. The proposed regulations strengthen consumer protections in several key areas. First, the proposed regulations establish rules defining the purposes for […]

Jul 11, 2022 Read Now >
Jul 08, 2022

TD Bank/First Horizon: Trump CFPB Opted Not to Punish TD Auto Finance Subsidiary Following Years-long Investigation

The Consumer Financial Protection Bureau (CFPB) during the Trump administration decided not to punish TD Auto Finance, a subsidiary of TD Bank (TD), following a years-long investigation into TD Auto Finance, according to an agency document and sources familiar with the matter. The CFPB opened the investigation in 2015 and, as of 2018, a TD […]

Jul 08, 2022 Read Now >
Jun 17, 2022

Perdoceo Education Corporation: Insider Selling Red Flags at Perdoceo; Advocates Call ED ‘Asleep at the Wheel’ on For-Profit Education

Elise Baskel took over as President of Perdoceo’s (PRDO) Colorado Technical University (CTU) in January 2022. In short order, Baskel implemented a trading plan known as 10b5-1 to regularly sell off her vested shares in Perdoceo, ultimately selling off 100% of her vested shares over a three-month period, cashing out a total of over $280,000. […]

Jun 17, 2022 Read Now >
Jun 17, 2022

Oil and Gas Buyers Pause Amidst Volatility and a Lack of Top-Tier Assets; Interest in Ohio Especially Subdued

As Appalachian natural gas companies continue to bring their portfolios to market, buyers have yet to be persuaded on the upside as they expect further volatility into the winter and beyond. Sellers like ExxonMobil (XOM), Tug Hill Operating, Apex Energy, and Olympus Energy have been expected to take discounts from interested buyers who want to […]

Jun 17, 2022 Read Now >
Jun 01, 2022

FirstCash: Financing Practices of American First Finance Subsidiary Could Draw Scrutiny from Democratic Majority FTC, Expanded Ongoing State AG Investigation

The financing practices of American First Finance (AFF), a subsidiary of pawn shop operator FirstCash, Inc. (FCFS), could draw the scrutiny of the Federal Trade Commission and state attorneys general, according to an investigation by The Capitol Forum. AFF specializes in point-of-sale payment options, offering consumers with poor credit lease-to-own and retail installment sales agreements […]

Jun 01, 2022 Read Now >
Jun 01, 2022

NortonLifeLock/Avast: UK’s More Concentrated Markets, Higher Prices Provide Context for CMA Probe

The UK economy is exhibiting a “worrying combination of trends”: more concentrated industries, higher prices by way of greater markups – a measure of market power – and the largest companies holding onto their sector-leading positions for longer, according to Mike Walker, the chief economic adviser to the Competition and Markets Authority. That stark view, […]

Jun 01, 2022 Read Now >
May 23, 2022

The European Antitrust Agenda: EC Raids Fashion Companies; CMA Publishes Full Norton/Avast Decision; Google Reports Privacy Sandbox Progress; LSE Faces Quantile Merger Jeopardy

EC conducts fashion sector antitrust raids. The European Commission on Tuesday disclosed it has begun conducting unannounced inspections of fashion-industry companies in several EU member countries. The raids are a preliminary investigative step into suspected anticompetitive practices and don’t indicate that the companies targeted are guilty of violations, the commission said.   The commission didn’t publish […]

May 23, 2022 Read Now >
May 23, 2022

The Antitrust Agenda: Keeping Score as Antitrust Legislation Heads to Senate Floor; Subscription Offerings May Enjoy Break from Apple/Google App Store Taxes; Agency Funding Update

Senate floor time for antitrust bill means likely passage into law. Axios reported May 19 that Senate Majority Leader is telling colleagues that he will allow for a Senate floor vote on antitrust legislation in early summer. A source close to the legislative process explained that, to date, all votes on antitrust legislation have been […]

May 23, 2022 Read Now >
May 17, 2022

Ericsson/Vonage: CFIUS Review of Telecom Deal is Ongoing, Company Spokesperson Says

The Committee on Foreign Investment in the United States (CFIUS) is still reviewing Ericsson’s (ERIC) proposed $6.2 billion buyout of U.S. cloud communications provider Vonage (VG), said a spokesperson for the Swedish telecommunications company, ending weeks of investor speculation about the investigation.  “We are in dialogue with the committee, and the deal is currently under […]

May 17, 2022 Read Now >
May 04, 2022

TD Bank/First Horizon: Faulty Accounts Didn’t Draw Fines From Trump Officials; Workers Say Suspect Practices Persist As Deal Approvals Sought

Despite finding TD Bank (TD) wrongly pressured customers into opening accounts and using banking services they didn’t want, a leading bank regulator during the Trump administration opted to give the company a private reprimand rather than a fine for the abuses, according to sources familiar with the matter. The Office of the Comptroller of the […]

May 04, 2022 Read Now >
May 02, 2022

The Antitrust Agenda: FTC Morale Issues in a Historical Context; In Blows to Big Tech, Sally Hubbard Takes Position at DOJ, Raimondo Supports Antitrust Legislation

The real history of morale at the FTC: Jim Miller on combative staff early in his tenure. The Office of Personnel Management last week released the results of its 2021 Federal Employee Viewpoint Survey (FEVS), which collects feedback from agency employees to detail their views on agency leadership, policies, and practice. The FTC has historically […]

May 02, 2022 Read Now >
Apr 28, 2022

FTC, DOJ Officials Emphasize Clayton Act’s ‘Tend to Create a Monopoly’ Prong, Broadening Scope of Deals in Agency Crosshairs

DOJ and FTC officials in recent speeches have touted a historically underutilized prong of the Clayton Act they said could serve to meaningfully broaden the scope of U.S. merger enforcement. The Clayton Act prohibits mergers or acquisitions whose effect “may be substantially to lessen competition, or to tend to create a monopoly.” But U.S. antitrust […]

Apr 28, 2022 Read Now >
Apr 28, 2022

MultiPlan’s ‘Maybe You’re In-Network’ PPO Product May Violate No Surprises Act, Experts Say

MultiPlan’s (MPLN) products for health plans fall under two umbrellas—a preferred provider organization (PPO) network product and products related to payment editing, negotiating, and repricing of healthcare claims. The Capitol Forum has previously reported about the company’s editing, negotiating, and repricing services. MultiPlan’s PPO product lets health plans rent Multiplan’s networks as a primary network […]

Apr 28, 2022 Read Now >
Apr 27, 2022

Upstart: Seemingly Important Upstart Accounting Change Made Public via KBRA Pre-sale Securitization Report; Expert Says Accounting Change Likely to Be Mentioned in Upcoming 10-Q

Upstart amended loan modification program in April. According to a new KBRA pre-sale report on Upstart’s (UPST) structured pass through trust series 2022-2a, “In April 2022, Upstart amended its CRB and FinWise loan modification policies. Under the new policy, borrowers that have experienced a temporary reduction in income, unexpected increase in expenses, or a job […]

Apr 27, 2022 Read Now >
Apr 21, 2022

JetBlue’s Competing $3.6 Billion Merger Offer Complicates Spirit Airlines’ Opposition to Northeast Alliance

JetBlue’s (JBLU) unsolicited $3.6 billion offer earlier this month to buy Spirit Airlines (SAVE) does more than inject uncertainty into the discount carrier’s future plans: It complicates Spirit’s role as a leading opponent of JetBlue and American Airlines’ (AAL) Northeast Alliance, potentially affecting DOJ’s attempts to unravel the business partnership. In a filing last year […]

Apr 21, 2022 Read Now >
Apr 14, 2022

Carvana: Auction Participants Moving Away from ADESA After Announcement of Acquisition

Earlier this year, online used car dealer Carvana (CVNA) announced that it was acquiring the auction business of KAR Global (KAR) for $2.2 billion. The press release accompanying the announcement noted that the acquisition would greatly expand Carvana’s existing auto reconditioning infrastructure and stated that the company “will continue to operate ADESA U.S.’s existing wholesale […]

Apr 14, 2022 Read Now >
Apr 11, 2022

Gazprom Firmly in EC’s Antitrust Sights as Pressure Mounts From Skyrocketing Energy Prices, War in Ukraine

European Commission investigators are stepping up their ongoing probe into allegations Russia’s state-owned Gazprom (GAZP) has abused its dominance on the wholesale natural gas market as political pressure mounts to address surging energy prices in light of the war in Ukraine. The commission is said to have raided the Russian company’s German offices at the […]

Apr 11, 2022 Read Now >
Apr 08, 2022

Provider Shows How Multiplan Incentivizes Him to Raise His Billing Rate; Multiplan Says It “Does Not Encourage Providers to Overcharge”

Multiplan (MPLN) says that it provides “independent, fair, and reasonable” pricing for out-of-network healthcare services. Previous Capitol Forum reporting showed that Multiplan’s pricing is not independent, as it can be manipulated by insurers. According to Capitol Forum’s ongoing investigation, Multiplan’s pricing is also not “fair and reasonable,” as the pricing appears to be based on […]

Apr 08, 2022 Read Now >
Apr 06, 2022

Merger Monthly: Delrahim’s Pre-Election Remedies Manual Revision Could Undercut DOJ Change Healthcare Case; Outlook for Key Transactions Including Microsoft/Activision, Norton/Avast, and II-VI/Coherent

Just two months before the 2020 election, Trump administration DOJ antitrust division head Makan Delrahim issued a revised merger remedies manual that upended the existing debate about whether—and when—the U.S. agencies would accept private equity divestiture purchasers. Not only would DOJ evaluate those buyers according to the “same criteria” as their strategic counterparts, the manual […]

Apr 06, 2022 Read Now >
Apr 06, 2022

Natera: Company Reviewed MGML Non-Profit Status Twice; Review Raises Questions of Rigor, Potentially Exposing Company to Securities Litigation Risk

Last month, investment research firm Hindenburg Research published a report on the genetic testing company Natera (NTRA) that accused the company of deceptive practices regarding its insurance billings. At the center of the report was the allegation that the company had used a company with questionable charitable status called My Genome My Life (MGML) that […]

Apr 06, 2022 Read Now >
Apr 05, 2022

Agency Process Divergence Leaves Deal Lawyers Hoping DOJ, Not FTC, Leads Their Merger Reviews

FTC Chair Lina Khan and DOJ antitrust division head Jonathan Kanter are fellow travelers in the anti-monopoly movement who have used their perches atop the U.S. antitrust agencies to implement much tougher approaches to merger review and remedy negotiations. But although DOJ under Kanter isn’t necessarily seen as less hawkish on those issues than Khan’s […]

Apr 05, 2022 Read Now >
Mar 24, 2022

UGI: Propane Customers Nationwide Face Lengthy Delays as Scripted Customer Service Agents Appear to Mislead Customers; Company Conduct Could Invite Further Legal Scrutiny

Hundreds of UGI Corp.’s (UGI) AmeriGas retail propane customers in at least 39 states have experienced service delays for weeks to months during some of the coldest periods of the winter season, according to a Capitol Forum investigation. Most complaints follow a pattern: vulnerable customers in rural pockets of the country with little to no […]

Mar 24, 2022 Read Now >
Mar 23, 2022

In Blow to Multiplan, UnitedHealth Group Has Begun Transitioning Clients to Naviguard, UnitedHealth’s In-house Product

UnitedHealth Group (UNH) is now offering its large employer customers options to transition away from paying high fees for Multiplan’s (MPLN) out-of-network claim pricing services, according to a Capitol Forum investigation. One option for employers is to switch to Naviguard, UnitedHealth Group’s in-house product. Another option for employers is to continue using Multiplan but […]

Mar 23, 2022 Read Now >
Mar 23, 2022

Microsoft/Activision Blizzard: Video Game Tie-up Draws FTC Scrutiny, Third-Party Concerns, Over Streaming Impact

FTC staff is probing whether Microsoft’s (MSFT) proposed $68.7 billion acquisition of Activision Blizzard (ATVI) would allow the combined company to harm competition in video game streaming markets by withholding gaming titles from rivals, sources familiar with the matter said. As part of its early-stage fact-gathering, FTC staff has heard concerns from industry participants that […]

Mar 23, 2022 Read Now >
Mar 21, 2022

The Antitrust Agenda: Absent Senate Dems Stall Bedoya; Movement on Kanter Front Office; Khan and Kanter Collaboration Signals Drop in ABA Influence; NTIA Hire Sets Up Clash with DOJ Antitrust

Absent Senate Dems stall Bedoya. Sources supporting Alvaro Bedoya, President Joe Biden’s nominee for the FTC’s third Democratic commissioner slot, were expecting movement from Senate Majority Leader Chuck Schumer (D-NY) on the confirmation front last week. But Schumer needed all 50 Senate Democrats at the Capitol in order to move Bedoya, and he didn’t have […]

Mar 21, 2022 Read Now >
Mar 18, 2022

II-VI/Coherent: SAMR Weighs Behavioral Remedy Proposal to Address Industry Excimer Laser Supply Concerns

Case handlers at China’s antitrust authority are evaluating whether a behavioral remedy package that optical components maker II-VI (IIVI) proposed in an effort to clinch its $6.8 billion bid for Coherent (COHR) is sufficient to address industry competition concerns with the tie-up, sources familiar with the matter said. The II-VI proposal includes promises to maintain […]

Mar 18, 2022 Read Now >
Mar 17, 2022

DOJ Probes Apple App Store Guidelines That Restrict Cloud Gaming Services, Super Apps

DOJ attorneys are probing whether guidelines Apple (AAPL) uses to restrict cloud gaming services and so-called super apps’ access to its App Store could harm competition and cement the company’s mobile dominance, sources familiar with the matter said. The department’s investigation, which has intensified in recent weeks, is partly focused on section 4.7 of Apple’s […]

Mar 17, 2022 Read Now >
Mar 17, 2022

Mastercard: DOJ Inquiring About Debit Card Used by Popular Delivery Apps

DOJ’s antitrust division is asking whether a Mastercard-backed debit card used by delivery apps like Grubhub, Instacart, Uber Eats (UBER) and DoorDash (DASH) prevent rival debit networks from competing at checkout, according to sources familiar with the probe. At issue is a debit card issued by a fintech called Marqeta (MQ), and backed by Mastercard. […]

Mar 17, 2022 Read Now >
Mar 17, 2022

NortonLifeLock/Avast: Constraint Posed by Pre-Installed Antivirus at Heart of CMA Merger Probe

Microsoft’s (MSFT) pre-installed Defender antivirus protection is at the center of contrasting European phase I merger review outcomes in the UK, Germany and Spain concerning NortonLifeLock’s (NLOK) proposed $8.1 billion acquisition of rival Avast (AVST). The “built-in” nature of Defender means “consumers may not actively be choosing to use Microsoft,” which in turn likely overstates […]

Mar 17, 2022 Read Now >
Mar 14, 2022

The European Antitrust Agenda: Google-Facebook Ad Deal Draws EC, CMA Probes Over Possible Collusion; CMA Nears Verdict on Norton/Avast Deal; Germany to Rule on Qualcomm/Arriver Transaction

Google and Meta face parallel probes by EC and CMA over adtech agreement. In a first since Brexit, the European Commission and the UK’s Competition and Markets Authority on Friday opened parallel investigations into whether Alphabet’s (GOOG) Google and Facebook parent Meta Platforms (FB) illegally cooperated in the market for displaying ads on the websites […]

Mar 14, 2022 Read Now >
Mar 14, 2022

UnitedHealth/Change Healthcare: Companies to Announce Proposed Divestiture of Claims Editing Software Unit In “Matter of Weeks,” Defense Attorney Says

Change Healthcare (CHNG) plans to sign “in a matter of weeks” a deal to divest a business unit that includes its claims-editing software, eliminating the major horizontal overlap that helped spark DOJ’s suit to block UnitedHealth Group’s proposed $7.8 billion purchase of the company, an attorney for UnitedHealth said today. “The horizontal aspect of this […]

Mar 14, 2022 Read Now >
Mar 11, 2022

ZoomInfo: Advocates for Victims of Domestic Violence Raise Concerns Over ZoomInfo’s Community Edition; FTC Nominee Has Championed Policies That Protect Victims of Abuse

Advocates for victims of domestic violence tell The Capitol Forum that they are concerned about the possibility that some victims of domestic violence may unknowingly be exposing sensitive contact information to ZoomInfo’s (ZI) database via the company’s Community Edition service. Users of Community Edition agree to allow ZoomInfo to scrape their address book and emails […]

Mar 11, 2022 Read Now >
Mar 09, 2022

Algorithmic Collusion Will Draw Increasing EC Scrutiny Over Coming Years

The European Commission is assessing how companies might create cartels using artificial intelligence (AI)—increasingly the foundation of technology and commerce worldwide, The Capitol Forum has learned. Online retailers—think Amazon (AMZN) and eBay (EBAY), for example—as well as financial institutions and firms that offer pricing software are particularly at risk of enforcement action, analysis by The […]

Mar 09, 2022 Read Now >
Mar 07, 2022

Multiplan: Company’s Information Sharing, Meetings Practices Could Raise Antitrust Concerns, Experts Say

Multiplan (MPLN), a company that helps health insurers underpay healthcare provider bills, may have an antitrust issue on its hands, according to experts who reviewed Multiplan practices that came to light during testimony in a recent litigation between a health insurer and emergency medicine staffing company TeamHealth. The antitrust concerns relate to court testimony showing […]

Mar 07, 2022 Read Now >
Mar 04, 2022

Oracle/Cerner: Buyer Could Be Next In Line to Test CMA’s Deal Review Appetite

Oracle (ORCL) could be the latest company in a long line to test the UK Competition and Markets Authority’s ardor for reviewing mergers in the tech industry. The firm in December said it would buy health technology supplier Cerner Corporation (CERN) for $28.3 billion, but to date the companies haven’t signaled any intention to seek […]

Mar 04, 2022 Read Now >
Feb 25, 2022

Poultry Price-Fixing Witnesses Were ‘Coerced’ Into Saying What DOJ Wanted to Hear, Defense Says

Witnesses against poultry executives charged with fixing prices and rigging bids for broiler chickens were coerced into saying what U.S. investigators wanted to hear, and the government’s star witness was a “liar,” defense attorneys told a jury in Denver on Thursday. FBI agents used interrogation tactics and applied enough pressure to make the witnesses “willing […]

Feb 25, 2022 Read Now >
Feb 24, 2022

U.S. Poultry Executives Were ‘Cheating,’ Not Competing, DOJ Says as Price-Fixing Retrial Opens

Executives at poultry producers including Tyson Foods (TSN) and Pilgrim’s Pride (PPC) “weren’t competing, they were cheating,” a prosecutor told a jury in Denver on Wednesday, as the U.S. government opened its arguments in a retrial of 10 current and former managers charged with fixing prices and rigging bids for broiler chickens. “They were […]

Feb 24, 2022 Read Now >
Feb 24, 2022

Continental Grain-Cargill/Sanderson Farms: Cargill Soybean Meal Position Draws DOJ Scrutiny, Third Party Complaints Over Local Market Concerns

DOJ staff attorneys are probing whether Cargill’s leading position in chicken feed ingredients would allow the company to harm rivals to its proposed $4.5 billion joint venture with Continental Grain to acquire Sanderson Farms (SAFM) by raising their costs or restricting their supply, sources familiar with the matter said. Although staff is investigating Cargill’s […]

Feb 24, 2022 Read Now >
Feb 23, 2022

Illumina/Grail: EC Review Hiatus Signals Remedy Flexibility in Face of Court Jurisdiction Ruling

The European Commission’s decision to pause its in-depth probe into Illumina’s (ILMN) acquisition of cancer detection test maker Grail just days after the buyer submitted formal concessions designed to address competition misgivings indicates the regulator isn’t dead set on blocking the deal. The commission’s procedural flexibility—which will allow Illumina more time to improve its […]

Feb 23, 2022 Read Now >
Feb 22, 2022

Oak Street Health: DOJ Investigation Likely Focuses on Program That May Be Problematic Under Federal Antikickback Laws

Last November, Oak Street Health (OSH), an operator of primary care clinics for Medicare beneficiaries, disclosed to investors that it had received a civil investigative demand from the Department of Justice. While the company has not shared many details about the scope of the investigation, one of the areas of the DOJ’s focus is likely […]

Feb 22, 2022 Read Now >
Feb 22, 2022

The Antitrust Agenda: Republican Tactics Could Further Complicate Bedoya Vote Timeline; Report Highlights DOJ Resource Concerns; DOD Issues High-Impact Report on Competition

Will Bedoya confirmation require nuclear option? President Joe Biden nominated Alvaro Bedoya to fill the FTC’s third Democratic seat on September 13. And although Bedoya—after a long wait—was expected to finally win Senate confirmation this month, Senator Ben Ray Lujan’s (D-NM) recent stroke pushed that timeline back by at least six weeks. And now […]

Feb 22, 2022 Read Now >
Feb 22, 2022

Meta Platforms: Deal For VR Fitness Startup Draws FTC Input, Customer Foreclosure Scrutiny, Third Party Concerns

Meta Platforms’ (FB) proposed purchase of virtual reality (VR) fitness startup Within is drawing FTC scrutiny over concerns the deal would harm rival VR headset manufacturers and app developers, sources familiar with the matter said. The deal, announced on October 29, would give Meta control over Within’s Supernatural, a market-leading VR fitness service. That’s […]

Feb 22, 2022 Read Now >
Feb 22, 2022

The European Antitrust Agenda: Konecranes/Cargotec Deal Nears EC Decision; NortonLifeLock Delays Avast Closing; Five Eyes Alliance Targets Supply-Chain Collusion; Google Adds Android to “Privacy Sandbox”

Konecranes, Cargotec await EC merger decision. The European Commission could conclude its in-depth investigation into a merger between Konecranes (HEL: KCR) and Cargotec (HEL: CGCBV) as early as this week. The EU watchdog will decide on the deal by March 3, but Phase II decisions often come a week or more early. The commission […]

Feb 22, 2022 Read Now >
Feb 18, 2022

Coordination Out Loud: Volume 9: Analysis of Public Comments from Old Dominion Freight Line CFO

Special Note: Coordination Out Loud is a series of articles that analyze select corporate transcripts through the lens of Joseph Harrington’s landmark paper, “Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition.” The paper concludes that antitrust enforcers can be more aggressive in bringing cases around evidence of public invitations to […]

Feb 18, 2022 Read Now >
Feb 18, 2022

UnitedHealth Group/Change Healthcare: Health Insurer Prepares to Defend Deal in Court as Timing Agreement Deadline Approaches

UnitedHealth Group (UNH) is preparing to defend its proposed $7.8 billion Change Healthcare (CHNG) purchase in court as the companies approach the end of their timing agreement with DOJ on Tuesday with no resolution to the department’s antitrust concerns in sight, sources familiar with the matter said. UnitedHealth has retained Kirkland & Ellis to […]

Feb 18, 2022 Read Now >
Feb 17, 2022

NLRB Atlanta Opera Briefs Include Antitrust Arguments and Novel Proposals, Setting Stage for Gig Economy to Face All-of-Government Approach on Misclassification Concerns

Public interest, government, and industry groups recently submitted more than 30 amicus briefs to the NLRB in a case called Atlanta Opera that could redefine the distinction between employees and independent contractors, and in turn have significant implications for prominent gig economy, construction, trucking, home care, and janitorial services firms. The NLRB’s request, originally […]

Feb 17, 2022 Read Now >
Feb 14, 2022

The European Antitrust Agenda: Nvidia Abandons Arm Merger; Google Starts Complying with ‘Privacy Sandbox’ Commitments in UK; EC Opens Kingspan/Trimo Review; Apple Sees Dutch Dating-App Fines Pile Up

Nvidia terminates Arm merger plan. Nvidia (NVDA) last week abandoned its takeover of British chip designer Arm Holdings following regulatory resistance from competition authorities in Europe and the U.S. Though its review remained at an early stage in China, the State Administration for Market Regulation (SAMR) had also been expected to raise objections to the […]

Feb 14, 2022 Read Now >
Feb 10, 2022

ZoomInfo: Privacy Experts Raise Concerns About Community Edition Data Collection; Practices Could Run Afoul of GDPR, FTC Guidelines

Privacy advocates and experts interviewed by The Capitol Forum are raising concerns about the data collection practices of ZoomInfo (ZI), an aggregator of business contact data that includes profiles for over 10 million businesses and 125 million business professionals. At issue is ZoomInfo’s Community Edition, which offers users the ability to use the database for […]

Feb 10, 2022 Read Now >
Feb 09, 2022

InnovAge: Company Received Civil Investigative Demand from DOJ; Kentucky No Longer Intends to Enter into Agreement with Company

InnovAge (INNV), the country’s largest provider of senior healthcare services under the government’s Program for All Inclusive Care for the Elderly, disclosed in its most recent quarterly filing that it received a civil investigative demand from the Department of Justice under the Federal False Claims Act this month. The demand requests “information and documents […]

Feb 09, 2022 Read Now >
Feb 09, 2022

AT&T’s WarnerMedia/Discovery: DOJ Sends Companies Close-At-Your-Peril Letters, Continues to Review Deal

AT&T (T) and Discovery Communications (DISCA) have received letters from DOJ warning the companies that the department is still conducting an antitrust review of their $43 billion plan to merge AT&T’s WarnerMedia unit with Discovery and reserves the right to challenge the transaction, sources familiar with the matter said. DOJ staff attorneys are still […]

Feb 09, 2022 Read Now >
Feb 04, 2022

Merger Monthly: Could Microsoft/Activision and Updated Merger Guidelines Meet Again?; Outlook for Key Deals Including AMD/Xilinx, Microsoft/Nuance, and Rentokil/Terminix

The U.S. antitrust agencies formally unveiled their plans to begin rewriting the merger guidelines on January 18—coincidentally, the same day that Microsoft (MSFT) announced its $68.7 billion purchase of video game giant Activision Blizzard (ATVI)—the largest tech transaction of all time. That those two announcements hit the tape just hours apart didn’t escape commentators’ notice. […]

Feb 04, 2022 Read Now >
Feb 01, 2022

For-Profit Colleges Under CFPB Scrutiny for Lending Practices; Experts Expect Data Sharing with Education Department

The Consumer Financial Protection Bureau is becoming a new threat to for-profit colleges as the regulator signaled last week that it will examine institutional practices around lending money to students and collecting on those loans. For-profit institutions that engage in institutional lending to students include the publicly traded Universal Technical Institute (UTI), Lincoln Educational […]

Feb 01, 2022 Read Now >
Jan 31, 2022

Microsoft/Activision Blizzard: Input Foreclosure Questions Loom Over Global Reviews of Largest Ever Tech Tie-up

Microsoft’s (MSFT) proposed $68.7 billion acquisition of video game publishing giant Activision Blizzard (ATVI) is poised to face exacting global antitrust reviews focused on a host of horizontal and vertical questions, Capitol Forum analysis indicates. Of course, even if it raised no clear competition issues at all, the deal would attract close scrutiny—after all, it’s […]

Jan 31, 2022 Read Now >
Jan 27, 2022

Vodafone/Iliad: Despite Favorable Developments, Possible Italian Mobile Merger Could Face Same Hurdles as Past Deals

Talks between Vodafone Group (LON: VOD) and Iliad about merging their operations in Italy seem audacious given European Commission resistance to deals aimed at shrinking the number of mobile network operators (MNOs) in a country. After all, the commission in 2016 prohibited CK Hutchison Holding’s plan to buy Telefónica’s UK subsidiary and the same year […]

Jan 27, 2022 Read Now >
Jan 26, 2022

Oak Street Health: Former Medical Providers Express Concern Over Staffing Levels, Ability to Care for Medically Complex Populations; 13 Percent of All Clinics List No Doctor on Staff

Several former medical providers and clinical staff at Oak Street Health (OSH), an operator of primary care clinics for Medicare beneficiaries, tell The Capitol Forum that they felt their clinics were often too understaffed to provide appropriate care for patients. These understaffing issues, the employees said, were compounded by the medically complex populations that Oak […]

Jan 26, 2022 Read Now >
Jan 20, 2022

Prince/Ferro: Merger Set to Win Phase I EC Approval

Prince International is poised to win Phase I EC approval for its $2.1 billion acquisition of specialty materials manufacturer Ferro Corporation (FOE) after offering remedies sufficient to address the agency’s overlap concerns, The Capitol Forum has learned. Prince on November 3 disclosed plans to divest its European and U.S. porcelain enamel and glass coatings businesses […]

Jan 20, 2022 Read Now >
Jan 19, 2022

Medtronic/Intersect ENT: Companies in Talks to Divest Intersect’s Navigation System, Balloon Dilation Businesses

Medtronic (MDT) and Intersect ENT (XENT) have begun shopping Intersect’s sinus navigation system and balloon dilation businesses in an effort to head off FTC competition concerns about their proposed $1.1 billion tie-up, sources familiar with the matter said. The companies are vetting multiple potential buyers for Intersect’s Fiagon AG unit, which houses both business segments. […]

Jan 19, 2022 Read Now >
Jan 19, 2022

Microsoft/Nuance: Big Tech, Health Care Questions Weigh on CMA Review

Microsoft’s (MSFT) proposed $19.7 billion acquisition of Nuance Communications (NUAN) is said to face at least two key headwinds at the UK’s Competition and Markets Authority (CMA): the complexity of assessing a high-profile deal involving one of the Big Tech giants and the transaction’s effect on the National Health Service—a highly sensitive area for the […]

Jan 19, 2022 Read Now >
Jan 19, 2022

CFIUS Extends Reach on Non-Notified Deals, as Biden Administration Seeks to Deepen National Security Scrutiny in 2022

The Committee on Foreign Investment in the United States (CFIUS) plans to open more investigations this year into transactions that haven’t been filed to the panel, posing a new regulatory roadblock for companies that may underestimate the national security implications of their deals. CFIUS has been ramping up its scrutiny of non-notified deals ever since […]

Jan 19, 2022 Read Now >
Jan 18, 2022

Coordination Out Loud: Volume 8: Analysis of Public Statements from BMW and Daimler Executives in the Financial Times

Special Note: Coordination Out Loud is a series of articles that analyze select corporate transcripts through the lens of Joseph Harrington’s landmark paper, “Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition.” The paper concludes that antitrust enforcers can be more aggressive in bringing cases around evidence of public invitations to collude […]

Jan 18, 2022 Read Now >
Jan 18, 2022

The Antitrust Agenda: Joint FTC, DOJ Press Conference on Merger Guidelines Request for Information; Kanter Slate of Hires Expected Soon; Senate Banking Chair Brown, Warren Prod Fed Nominees on Concentration

The Antitrust Agenda: Joint FTC, DOJ Press Conference on Merger Guidelines Request for Information; Kanter Slate of Hires Expected Soon; Senate Banking Chair Brown, Warren Prod Fed Nominees on Concentration Kanter and Khan Joint Press Conference on Issuing Request for Information to Update Merger Guidelines: LINK to press release. LINK to request for information. LINK […]

Jan 18, 2022 Read Now >
Jan 18, 2022

The European Antitrust Agenda: Nvidia/Arm’s Slim UK Approval Chances; Google’s Showcase Probe Proposal; EC’s Block Of Shipbuilding Merger; End-game talks on EU’s DMA

Nvidia defends Arm deal. Nvidia’s (NVDA) response to the UK Competition and Markets Authority’s (CMA) in-depth probe of the company’s planned acquisition of British chip designer Arm Holdings articulates a defense that’s well within the mainstream of European antitrust law. Yet such is the global regulatory antipathy toward the $40 billion takeover that the prospects […]

Jan 18, 2022 Read Now >
Jan 13, 2022

Konecranes/Cargotec: Companies Take Aim at CMA Provisional Findings But Continue to Face High UK Hurdle

Konecranes (HEL: KCR) and Cargotec (HEL: CGCBV) this week lambasted the Competition and Markets Authority’s (CMA) provisional findings that their proposed merger is anticompetitive, calling the UK antitrust watchdog’s view of the $5.3 billion deal “wrong as a matter of fact and law.” But sharp criticism from companies rarely, if ever, changes CMA enforcers’ minds, […]

Jan 13, 2022 Read Now >
Jan 13, 2022

Blue Ridge/FVCBankcorp: U.S. Regulators Investigate Blue Ridge for Lending Abuses, Casting Shadow Over Proposed Tie-up

Federal bank regulators are examining whether Blue Ridge Bank (BRBS) discriminated against minorities in its mortgage lending business, in an investigation that could stall or even upend the bank’s proposed merger with FVCBankcorp (FVCB), sources familiar with the probe said. Blue Ridge, a prominent partner to fintech firms, and FVCBankcorp announced their tie-up in July, […]

Jan 13, 2022 Read Now >
Jan 11, 2022

Suburban Propane and UGI Corp: Customers Complain of Price Gouging, Posing Regulatory Risk Amid State and Federal Calls to Examine Consumer Energy Costs

Residential customers of Suburban Propane (SPH) and UGI Corp. (UGI) subsidiary AmeriGas in 15 states described sharply rising propane prices as fall turned to winter, leading to significant duress in some customers’ everyday lives, according to a review of online complaints and interviews with the complaining customers. With federal and state law enforcers looking for […]

Jan 11, 2022 Read Now >
Jan 10, 2022

The Antitrust Agenda: Bedoya Committee Vote Pushed to January 24; Khan Continues to Meet with Congressional Republicans; Biden Repeats Concerns Over Monopolies in Meat Processing, Shipping, Rail and Big Tech

Bedoya hearing pushed to January 24. Originally, the Senate Commerce Committee’s re-vote on the nomination of Alvaro Bedoya, President Joe Biden’s choice to fill the FTC’s third Democratic seat, was tentatively set for January 12. But, according to a source, the vote has now been pushed back to January 24. That makes it more likely […]

Jan 10, 2022 Read Now >
Jan 10, 2022

The European Antitrust Agenda: Google’s Clout Targeted in Germany; Developments in Microsoft/Nuance, Veolia/Suez Mergers; Meta Appeals Giphy Prohibition

Germany targets Google’s market power. Google faces deeper antitrust scrutiny in Germany following a Bundeskartellamt decision last week that the search engine and its parent, Alphabet (GOOG), meet a threshold for new abuse controls meant to speed up investigations. Remedies imposed on Google and Alphabet by the national cartel office will be restricted to the […]

Jan 10, 2022 Read Now >
Jan 10, 2022

Lumentum/NeoPhotonics: DOJ Probes Optical Transmission Tie-Up’s Effects on Existing, Potential Competition

DOJ staff is investigating whether Lumentum’s (LITE) proposed $918 million purchase of optical communications rival NeoPhotonics (NPTN) would eliminate existing or potential competition in markets for transceiver modules and the lasers that power them, industry sources said. Both Lumentum and NeoPhotonics make products that transmit and receive optical data and help to form the network […]

Jan 10, 2022 Read Now >
Jan 10, 2022

Used Car Weekly: Average Age of Inventory Increases for Several Online Dealers

The average number of days that a used vehicle is spending in the inventory of several online car dealers has increased over the past month, according to a Capitol Forum analysis of those companies’ websites. CarMax (KMX), Vroom (VRM), and DriveTime all saw the average age of their respective inventories grow by between 15 and […]

Jan 10, 2022 Read Now >
Jan 06, 2022

Momentum Builds for FTC Rulemaking Banning Exclusionary Contracts

Antitrust advocates hoping the FTC will direct its rulemaking attention to banning exclusionary contracts by dominant firms have received encouraging signals in recent weeks. Most obviously, the FTC in a December 10 statement disclosing its 2022 regulatory priorities said it was “carefully reviewing” the thousands of comments submitted in response to its August request for […]

Jan 06, 2022 Read Now >
Jan 06, 2022

Chegg: Student Use in 2021 Started Strong, But Return to In-Person Learning and Awareness of Cheating Potential Dampened Growth

A Capitol Forum analysis of student use of Chegg’s (CHGG) question and answer service in 2021 finds that the service enjoyed robust growth during the first half of the year. However, as schools returned to in-person learning and schools became more aware of the platform’s ability to be used to cheat, the service saw negative […]

Jan 06, 2022 Read Now >
Dec 23, 2021

InnovAge: Colorado Halts New Medicaid Enrollments, Following CMS’ Medicare Halt

The Colorado Department of Healthcare Policy and Financing informed InnovAge (INNV), the country’s largest provider of senior healthcare services under the government’s Program for All Inclusive Care for the Elderly, that it was halting new enrollments of Medicaid beneficiaries into the company’s program effective immediately. HCPF’s audit, which was first reported by The Capitol Forum […]

Dec 23, 2021 Read Now >
Dec 22, 2021

Rentokil/Terminix: Company Annual Reports Foreshadow National Account Scrutiny

Pest control giant Terminix’s (TMX) statements in its 2018 and 2019 annual reports foreshadow what could be the key sticking point in the U.S. government’s antitrust review of the company’s proposed $6.7 billion acquisition by rival Rentokil Initial (RTO:LN). “Competition in industry for national account pest management services in the United States comes primarily from […]

Dec 22, 2021 Read Now >
Dec 22, 2021

SAMR, In Anti-Corruption Push, Double-Checks Case Handlers’ Work, Likely Delaying Merger and Conduct Reviews

China’s antitrust agency, under pressure from a government anti-corruption watchdog, is double-checking senior staff’s work and more generally increasing supervision of its workforce, which could lead to delays in merger and conduct reviews, attorneys said. On Tuesday, the chief inspector of the CPC Central Commission for Discipline Inspection’s (CCDI) Office to the State Administration for […]

Dec 22, 2021 Read Now >
Dec 22, 2021

InnovAge: CMS Halts Medicare Enrollment at All Colorado Facilities

Earlier today, the Centers for Medicare and Medicaid Services notified InnovAge (INNV), the largest provider of healthcare services under the government’s Program for All Inclusive Care for the Elderly, that, effective December 23, 2021, “CMS is suspending InnovAge CO’s enrollment of new Medicare beneficiaries.” The letter states that “CMS has concluded that InnovAge CO failed […]

Dec 22, 2021 Read Now >
Dec 17, 2021

U.S. Bank Regulators Seek to Police Cryptocurrency With Existing Powers, Officials Say

Federal officials concerned that the cryptocurrency industry needs urgent oversight are developing plans to let banking regulators use their existing powers to examine crypto companies when they partner with traditional banks, according to financial and regulatory sources familiar with the thinking. U.S. bank regulators have the authority to examine—and fine—contractors and other outside companies that […]

Dec 17, 2021 Read Now >
Dec 17, 2021

Tim Wu Update on Alcohol Market Concerns Hints at Category Management as Potential Area of Interest

Tim Wu, a special assistant to the president for competition policy, at a recent town hall discussion organized by American Economic Liberties Project identified distribution and vertical integration in alcohol markets as problems that he hoped that an upcoming study and rulemaking from the Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) would address. […]

Dec 17, 2021 Read Now >
Dec 16, 2021

Oak Street Health: Former Clinical Staff Say Company Pressured Them to Diagnose Diseases with High Rates of Reimbursement

Former doctors, nurses, medical assistants, and medical coders at Oak Street Health (OSH), a provider of primary care for Medicare Advantage beneficiaries, tell The Capitol Forum that the company often pressured them to diagnose patients with certain medical conditions despite lacking appropriate clinical documentation. These diagnoses were pushed, in the opinion of the former employees, […]

Dec 16, 2021 Read Now >
Dec 10, 2021

Facebook Ignores Pleas on Fair Lending Rules, Unnerving Financial Services Execs

Facebook parent Meta Platforms (FB) is refusing to guarantee that its advertising algorithms comply with U.S. rules on fair lending, leaving banks and other financial service providers worried that the social media giant could expose them to fines and hits to their reputations, executives said. The federal rules forbid lenders to base their marketing on […]

Dec 10, 2021 Read Now >
Dec 10, 2021

AMD/Xilinx, GlobalWafers/Siltronic Reviews Could Serve as Signposts Indicating Chinese Antitrust Enforcement’s Future Direction

Advanced Micro Devices’ (AMD) proposed $35 billion Xilinx (XLNX) buyout and GlobalWafers’ (TPEX:6488) planned $5.3 billion Siltronic purchase (FRA:WAF) have attained a significance beyond the semiconductor industry as their antitrust reviews in China serve as signposts indicating the future direction of the country’s competition enforcement, legal practitioners said. Now both reviews have entered a critical […]

Dec 10, 2021 Read Now >
Dec 10, 2021

AMD/Xilinx, GlobalWafers/Siltronic Reviews Could Serve as Signposts Indicating Chinese Antitrust Enforcement’s Future Direction

Advanced Micro Devices’ (AMD) proposed $35 billion Xilinx (XLNX) buyout and GlobalWafers’ (TPEX:6488) planned $5.3 billion Siltronic purchase (FRA:WAF) have attained a significance beyond the semiconductor industry as their antitrust reviews in China serve as signposts indicating the future direction of the country’s competition enforcement, legal practitioners said. Now both reviews have entered a critical […]

Dec 10, 2021 Read Now >
Dec 03, 2021

Ride Sharing: Uber, Lyft Driver Incentive Programs Could Draw FTC Exclusive Dealing, Rulemaking, Scrutiny, Experts Say

Uber (UBER) and Lyft (LYFT) deploy a number of incentive programs to attract drivers. The companies call them bonuses, but some legal experts see the programs as a potential violation of antitrust law. The programs are designed to incentivize drivers to work exclusively for one app during a set period of time. For example, Uber […]

Dec 03, 2021 Read Now >
Nov 29, 2021

The Antitrust Agenda: Khan Calendars; G7 Meeting Starts with a Bang as CMA Reportedly Set to Prohibit Facebook’s Acquisition of Giphy; New Yorker Profile Provides Insight into Khan’s Decision-Making Process

Meeting of G7 competition authorities starts with a bang. Before the heads of the G7 competition authorities kicked off their summit today in London to discuss ways to coordinate their approach to digital markets, the Financial Times broke the news that the CMA is set to prohibit Facebook’s completed $315 million acquisition of online image […]

Nov 29, 2021 Read Now >
Nov 29, 2021

The European Antitrust Agenda: Return of EC Cartel Fines; Defense Sector Raided; Veolia Proposes Suez Merger Concessions; Cargotec, Konecranes Get More Time for EC Remedies While Also Facing UK Concerns; Italy Halts Chinese Takeover; Facebook Offers Kustomer Undertakings

Cartel fines. Companies in breach of EU cartel rules have racked up fines totalling almost 1.4 billion euros ($1.58 billion) so far in 2021, according to updated statistics released last week by the European Commission. That compares to fines amounting to less than 300 million euros ($338 million) in 2020, signaling a bounce back to […]

Nov 29, 2021 Read Now >
Nov 23, 2021

Signify Health: Clinicians Raise Concerns About Adequacy of Follow-Up Care After In-Home Health Evaluations

Signify Health (SGFY)—a provider of in-home evaluations for individuals covered by Medicare Advantage, Managed Medicaid, and some Affordable Care Act health plans—emphasizes the increased quality of care its in-home evaluations help bring about. The company claims it helps individuals obtain follow-up care by booking appointments with their primary care doctors, getting them reengaged with their […]

Nov 23, 2021 Read Now >
Nov 22, 2021

Oak Street Health: Company Events and Other Recruitment Tactics Likely Violate Medicare Inducement Guidelines

Earlier this month, Oak Street Health (OSH), a provider of primary health care services for Medicare Advantage participants, disclosed that it had received a civil investigative demand from the Department of Justice. The DOJ requested documents “related to the Company’s relationships with third-party marketing agents and related to the Company’s provision of free transportation to […]

Nov 22, 2021 Read Now >
Nov 20, 2021

Treasury’s TTB Prioritizes Deregulation, Excludes Public Health Analysis in Request for Information, Providing First Glimpse at Coming Fight with FTC and DOJ Over Industry Study

President Joe Biden’s July 9 executive order on promoting competition took the alcohol industry by surprise when it singled out beer, wine and spirits as a candidate for new rulemakings, industry sources said. The order calls for the Secretary for Treasury, “in consultation with Department of Justice and the Federal Trade Commission,” to develop a […]

Nov 20, 2021 Read Now >
Nov 18, 2021

Signify Health: Company Requires Clinicians to Perform PAD Test for Some Patients Even When Clinicians Don’t Think it is Medically Necessary; Experts Say Data Does Not Support Performing PAD Test on Asymptomatic Patients

When Signify Health, Inc. (SGFY) schedules health plan members for a peripheral artery disease (PAD) screening test during an in-home health evaluation, clinicians are required to perform the test for patients who are covered by certain health plans even if they determine it is not clinically indicated, according to a Capitol Forum investigation. Peripheral artery […]

Nov 18, 2021 Read Now >
Nov 12, 2021

AMD/Xilinx: Deal’s Prospects Receive Boost From MIIT, Major Customer Support

Advanced Micro Devices’ (AMD) bid for rival chipmaker Xilinx (XLNX) received a boost recently when China’s primary tech regulator and some of the companies’ major corporate customers in the country signaled their support for the proposed $35 billion merger, sources familiar with the matter said. The Ministry of Industry and Information Technology (MIIT), the nation’s […]

Nov 12, 2021 Read Now >
Nov 11, 2021

InnovAge: CMS Currently Auditing Albuquerque Center; California Suspends Medicaid Enrollments at Troubled Sacramento Center

InnovAge (INNV), the country’s largest provider of senior health services under the government Program for All Inclusive Care for the Elderly (PACE), has been under audit by Centers for Medicare and Medicaid Services as well as state agencies in both California and Colorado for the last several months. That scrutiny appears to have extended to […]

Nov 11, 2021 Read Now >
Nov 10, 2021

Signify Health: Potential for Risk Score Gaming is Receiving Increased Regulatory Attention; Some Signify Telemarketers Appear to Use Aggressive Practices to Book Health Evaluations for Medicare Advantage Members; Clinicians Detail Concerns with Evaluation Process

Some patients, clinicians, and two former call center employees say some telemarketers for Signify Health Inc (SGFY), a provider of in-home health evaluations (IHEs), engage in aggressive—and, in some cases, misleading—practices to book home visits for seniors enrolled in Medicare Advantage and other health plans, according to a Capitol Forum investigation. Health risk assessments like […]

Nov 10, 2021 Read Now >
Nov 03, 2021

UnitedHealth Group/Change Healthcare: DOJ Staff Probes Clearinghouse Claims Data’s Value, Uniqueness

After expressing concern that UnitedHealth Group (UNH) through its proposed $7.8 billion acquisition of Change Healthcare (CHNG) could unfairly gain access to health insurance rivals’ sought-after claims information, DOJ staff attorneys are posing a surprising question: How special is the data? The staff attorneys recently asked industry participants about the competitive value of the claims […]

Nov 03, 2021 Read Now >
Nov 01, 2021

Bloom Energy: CPUC Proposed Decision Denies Company Bid for Microgrid Incentives During Grid Outages, Opting for Utilities’ Plans

On Friday, the California Public Utilities Commission (CPUC) preliminarily denied a Bloom Energy (BE) proposal to create a microgrid capacity services tariff to provide electricity to the grid during outages. Under its proposal previously reported on by The Capitol Forum, Bloom requested receipt of $2 per kilowatt-hour, the same amount given to utility companies from […]

Nov 01, 2021 Read Now >
Oct 27, 2021

EQT: Aspects of Company’s Well Inventory Appear to Violate State Regulations; State-Mandated Plugging in Pennsylvania Mounts; Roughly $85 Million in Liabilities in Kentucky May Belong to EQT, According to TCF Investigation

EQT Corp. (EQT), the nation’s largest natural gas producer, owns a higher proportion and count of non-producing wells in the Appalachian Basin than its publicly traded peers, according to a Capitol Forum investigation. Of EQT’s more than 3,600 inactive wells that must be either returned to production or plugged and remediated, hundreds appear to be […]

Oct 27, 2021 Read Now >
Oct 27, 2021

Great American Outdoors/Sportsman’s Warehouse: FTC, State AGs Express Significant Concerns With Retailer Tie-up

The FTC and state attorneys general have expressed significant concerns to Great American Outdoors Group and Sportsman’s Warehouse (SPWH) representatives that the retailers’ proposed $785 million merger would harm competition in multiple states, sources familiar with the matter said. The communications included meetings last month between the companies and individual FTC commissioners. Those meetings typically […]

Oct 27, 2021 Read Now >
Oct 20, 2021

Coordination Out Loud: Volume 7: Analysis of Public Statements from Johnson Controls CFO at Morgan Stanley Conference

Special Note: Coordination Out Loud is a series of articles that analyze select corporate transcripts through the lens of Joseph Harrington’s landmark paper, “Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition.” The paper concludes that antitrust enforcers can be more aggressive in bringing cases around evidence of public invitations to collude […]

Oct 20, 2021 Read Now >
Oct 19, 2021

Bloom Energy: Company Faces Risk to Incentives in South Korea; Joint Venture Partner Makes Big Bet on Hydrogen Competitor

Fuel cell manufacturer Bloom Energy (BE) faces a phase out of incentives it currently receives under The Republic of Korea’s Renewable Portfolio Standard (RPS) for its natural gas-powered fuel cells as the country moves towards a Hydrogen Portfolio Standard (HPS), sources familiar with the matter told The Capitol Forum. Details of the new hydrogen standard […]

Oct 19, 2021 Read Now >
Oct 18, 2021

Qualcomm/SSW Partners/Veoneer: Jurisdictional, Substantive Questions Loom Over Autonomous Driving Tech Proposal

A $4.5 billion bid from Qualcomm (QCOM) and investment firm SSW Partners to acquire Swedish auto tech company Veoneer (VNE) raises a host of jurisdictional and substantive issues that together create timing and outcome questions around the deal, industry sources said. SSW Partners through the October 4 agreement will acquire Veoneer, and shortly thereafter divest […]

Oct 18, 2021 Read Now >
Oct 13, 2021

S&P Global, Nvidia, Microsoft Reviews to Provide Insight Into EC, CMA Regulatory Approaches

European Commission and UK Competition and Markets Authority case handlers are grappling with parallel merger investigations into S&P Global’s (SPGI) acquisition of fellow financial data provider IHS Markit (INFO), Nvidia’s (NVDA) purchase of British chip designer Arm Holdings and Microsoft’s (MSFT) takeover of artificial intelligence company Nuance Communications (NUAN). The concurrent reviews will provide fresh […]

Oct 13, 2021 Read Now >
Oct 12, 2021

DoorDash: Earnings Claims Have the Potential to Mislead and Company Should Add Additional Disclosures, Experts Say

Online food ordering and food delivery platform DoorDash (DASH) advertises jobs on Facebook, Google and other third-party platforms, telling prospective DoorDash drivers that they can earn “up to” between $22 to $33 an hour, according to job postings The Capitol Forum reviewed. The advertised hourly rate can vary depending on the market the ad is […]

Oct 12, 2021 Read Now >
Oct 10, 2021

Fintech: U.S. Bank Regulators Will Shun Fintech Charters Under Biden

U.S. regulators are likely to rebuff the kinds of fintech bank charters that the Trump administration had embraced meaning new online lenders must find another way to get a toehold in the traditional lending market, according to industry and regulatory sources familiar with the administration’s thinking. In recent days, two fintech companies have withdrawn their […]

Oct 10, 2021 Read Now >
Oct 06, 2021

Higher Education Policy: FTC Resurrects Penalty Offense Authority Concerning Deceptive or Unfair Conduct in the Education Marketplace

Earlier today, the Federal Trade Commission announced that it was resurrecting its Penalty Offense Authority under Section 5 of the FTC Act to put for-profit higher education institutions on notice that the agency would “hit violators with significant financial penalties” of up to $43,792 per violation for misleading acts and practices to include false promises […]

Oct 06, 2021 Read Now >
Sep 30, 2021

U.S. Regulator Set to Reject Bank Charter Bid From UK Fintech Firm Monzo

A U.S. bank regulator plans to reject a bank charter application from Monzo, an online UK-based lender, according to sources with direct knowledge of the matter. The decision by the Office of the Comptroller of the Currency (OCC) is confidential and isn’t expected to be disclosed for weeks, giving Monzo time to withdraw its application […]

Sep 30, 2021 Read Now >
Sep 23, 2021

Glaukos: CMS Advisory Panel’s Recommendation Raising ASC Reimbursement Likely to Be Adopted, According to Experts

In a unanimous decision last month, a federal advisory panel voted to recommend that the Centers for Medicare and Medicaid Studies (CMS) raise the reimbursement rate that ambulatory surgical centers would receive for surgeries that insert stents into the eye of glaucoma patients to drain excess fluid. That recommendation, according to experts, is likely to […]

Sep 23, 2021 Read Now >
Sep 21, 2021

Credit Acceptance Corporation: Company Required to Alter Some Business Practices in State; Settlement Could Serve as Template for Other Investigations

Months after announcing an agreement in principle, the Massachusetts Attorney General and Credit Acceptance Corporation (CACC) settled the Attorney General’s lawsuit regarding the company’s business practices in Massachusetts. The company has agreed to pay $27.2 million to an independent trust for the purpose of restitution, paying the costs to implement the trust, and paying the […]

Sep 21, 2021 Read Now >
Sep 16, 2021

S&P Global/IHS Markit: Companies Don’t Anticipate Additional Behavioral, Structural Remedies

S&P Global (SPGI) and IHS Markit (INFO) don’t anticipate offering remedies beyond the divestiture of businesses they’ve already proposed selling to News Corp. (NWSA) to secure competition approvals for their $44 billion transaction, The Capitol Forum has learned. The companies last month announced the sale of IHS Markit’s Oil Price Information Service (OPIS) and related […]

Sep 16, 2021 Read Now >
Sep 16, 2021

Eargo: Blue Cross Blue Shield Federal Employee Insurance Plans Do Not Appear to Cover Eargo Devices

Ahead of last year’s federal benefits open enrollment, Blue Cross Blue Shield Federal Employee Program (BCBS FEP) the largest provider of benefits to federal employees, added clarifying language to its policy brochure to reiterate that it does not cover over-the-counter hearing aids. A spokesperson for Blue Cross Blue Shield Association explained in an email to […]

Sep 16, 2021 Read Now >
Sep 15, 2021

Glaukos: Doctors Expect CMS to Raise 2022 Reimbursement Rate for Minimally Invasive Glaucoma Surgery, Citing Likely Decrease in Access to Procedure from Proposed Rate

This article has been updated to include a comment from CMS and to clarify the commenting period for each proposal. When the Centers for Medicare and Medicaid released its proposed 2022 reimbursement rates for medical procedures, ophthalmologists around the country were surprised to find that CMS had reduced physician reimbursement for a popular, minimally invasive […]

Sep 15, 2021 Read Now >
Sep 14, 2021

APA Corp.: Entity Operating APA Legacy Assets Appears to Overstate Revenues and Understate Retirement Costs, Investigation Shows; Securities May Not Shield APA from Liabilities

The entity created in a bankruptcy reorganization to operate and fund the retirement of APA Corp’s (APA) legacy assets in the Gulf of Mexico may face more than $400 million in revenue shortfalls from lower-than-forecast production by 2025, according to The Capitol Forum’s investigation. In addition to lower potential revenues, the total estimated decommissioning costs […]

Sep 14, 2021 Read Now >
Sep 14, 2021

Alibaba, JD.com Agree to Settle Antitrust Suit as Regulators Deepen Crackdown on Internet Platforms

China’s two biggest e-commerce websites have agreed to settle a closely watched lawsuit in which JD.com (JD) accused Alibaba Group Holding (BABA) of engaging in monopolistic behavior and abusing its market dominance, sources familiar with the matter said. A settlement in the “great cat-and-dog war,” as the legal fight is known, would end the highest-profile […]

Sep 14, 2021 Read Now >
Sep 13, 2021

S&P Global/IHS Markit: DOJ Staff Leans Toward Recommending Clearance With Divestiture

DOJ staff is leaning toward recommending that department leadership clear S&P Global’s (SPGI) $44 billion bid for IHS Markit (INFO) now that the financial data service companies have lined up News Corp. (NWSA) as the divestiture buyer for IHS Markit’s energy pricing service, sources familiar with the matter said. Announced August 2, the proposed $1.15 […]

Sep 13, 2021 Read Now >
Sep 13, 2021

Visa: DOJ Targets Company’s Security, Tokenization Tactics in Ongoing Antitrust Probe

DOJ’s antitrust division is probing whether Visa (V) is pushing anti-fraud tools that help the company maintain its dominance in the online debit marketplace, sources familiar with the investigation said. Online shopping fraud has steadily climbed in recent years with losses on debit and cash cards running more than 50% higher than a decade ago, […]

Sep 13, 2021 Read Now >
Sep 10, 2021

InnovAge: Citing CMS Audit, Company Management Notifies Staff of At Least a Dozen Areas in Need of Improvement

On an internal staff call earlier today, InnovAge (INNV) management notified doctors and nurses of at least a dozen areas of improvement in its Colorado operations, citing issues found in the Centers for Medicare and Medicaid audit of the company’s Colorado operations. InnovAge, which is based in Colorado, is the country’s largest provider of senior […]

Sep 10, 2021 Read Now >
Sep 02, 2021

Higher Education Policy: Education Department Adopts Broad Interpretation of Closed School Discharge Regulations, Potentially Exposing Companies to Additional Liability

Several for-profit higher education companies that have closed schools in the past decade could face higher closed school discharge obligations after Education Secretary Miguel Cardona exercised his authority to extend the closed school discharge period for former ITT Technical Institute students last week. Students are eligible for federal loan forgiveness if they were enrolled at […]

Sep 02, 2021 Read Now >
Aug 30, 2021

Penumbra: Data Shared with FDA in Early June Showed Increase in Jet 7 Injuries and Deaths Attributed to Contrast Injection, But Company Did Not Warn Doctors Until Late July

On May 27, 2020, the Food and Drug Administration wrote to Penumbra (PEN) that it was “evaluating a potential post-market safety concern associated with use of the Penumbra JET 7 and 7X Reperfusion Catheters,” which are used to clear blood clots in the brains of stroke patients. Citing “reported distal tip fractures, breakages, ruptures, expansion/ballooning” […]

Aug 30, 2021 Read Now >
Aug 24, 2021

Amazon, Walmart in the Line of Fire as Biden Appointees Dust Off Robinson-Patman Act

Amazon (AMZN), Walmart (WMT) and other megaretailers could face renewed antitrust scrutiny and lawsuits under quiet moves by the Biden administration to resuscitate a Depression-era law meant to prevent large corporate buyers from purchasing goods at cheaper prices than smaller rivals can. The Robinson-Patman Act of 1936 crops up halfway through President Joe Biden’s recent […]

Aug 24, 2021 Read Now >
Aug 23, 2021

Penumbra: Emails with FDA Raise Questions About CEO’s Public Statements Regarding Adequacy of Warning to Doctors

Emails between the Food and Drug Administration and Penumbra (PEN) last year show that the government had concerns regarding how the company was informing doctors of the risks related to the use of its Jet 7 Xtra Flex catheter, which at that point had been involved in the death of at least 14 stroke patients. […]

Aug 23, 2021 Read Now >
Aug 05, 2021

Perdoceo Education Corporation: Company Notified of Education Department Fact-Finding Process into “Several Thousand” Borrower Defense Claims; Could Face Liability for Discharged Loans

On May 11, 2021, the Department of Education informed Perdoceo Education Corporation (PRDO) CEO Todd Nelson that it had several thousand borrower defense applications against the company’s schools alleging “misrepresentations concerning transferability of credits, accreditation, job placement rates, and employment prospects, among other misrepresentations,” according to documents The Capitol Forum obtained through a Freedom of […]

Aug 05, 2021 Read Now >
Aug 05, 2021

Natera: Experts Raise Concerns About Size of Prompt Pay Discounts and Company Billing Practices

Genetic testing company Natera (NTRA) allows expecting parents to pay a “prompt payment discount” for its Panorama prenatal test, often discounting the price from $795 or more to $249 if the customers pay within 30 days of receiving the bill. That roughly 70% discount, however, likely violates industry guidelines regarding these kinds of discounts, according […]

Aug 05, 2021 Read Now >
Jul 30, 2021

Eargo: Advertised 0% Financing Through Ally is Likely Misleading, According to Consumer Finance Experts; Customers Say Company Does Not Honor 45-Day Risk Free Trials

Eargo (EAR), a manufacturer of completely-in-canal (CIC) hearing aids, promises customers a 45-day risk-free trial period as well as offering up to 0% interest financing for its hearing aids. A Capitol Forum investigation, however, finds that the company regularly fails to honor the trial period and that the 0% financing option through Ally (ALLY) may […]

Jul 30, 2021 Read Now >
Jul 28, 2021

Bloom Energy: Regulatory Headwinds in Multiple East Coast States Likely to Hinder Company’s Ability to Participate in Certain Incentive Programs, Raising Concerns About Growth Plans Outside of California

In four of the nine East Coast states in which Bloom Energy (BE) operates, the company faces hurdles to participate in state-funded incentive programs designed to encourage renewable energy development, as states favor greener alternatives and have established other parameters that Bloom may struggle to meet, according to a Capitol Forum investigation. Of the four […]

Jul 28, 2021 Read Now >
Jul 15, 2021

Salesforce/Slack: DOJ Poised To Clear Transaction By End Of Month

DOJ is poised to clear Salesforce’s (CRM) proposed $27.7 billion acquisition of Slack (WORK) by the end of this month, sources familiar with the matter said. After an in-depth review in which the department demanded extensive business records from the merging parties and sent to multiple third parties civil investigative demands (CIDs) seeking documents and […]

Jul 15, 2021 Read Now >
Jul 14, 2021

Horizontal Concerns Take Center Stage as EC Begins New In-Depth Merger Probes

The European Commission recently launched two in-depth probes into mergers involving the proposed combination of direct competitors, ticking the most common box for heightened regulatory scrutiny in Brussels. But in the months ahead, a vertical deal is set to join those proposed tie-ups in the high-risk category. On the horizontal front, International Airlines Group’s (LON: […]

Jul 14, 2021 Read Now >
Jul 09, 2021

Higher Education Policy: Education Department Shifts Borrower Defense Application Reviews to Open Institutions; Will Consider Evidence from Other Regulators and Lawsuits

The office of Federal Student Aid (FSA) at the Department of Education recently shifted resources to focus on borrower defense to repayment claims made against open institutions, according to a spokesperson for the Department. The borrower defense applications have been submitted by former students against several schools including Ashford University, which Zovio Inc. (ZVO) sold […]

Jul 09, 2021 Read Now >
Jul 01, 2021

As DOJ Investigates Taboola and Outbrain for Possible Labor Antitrust Violations, Former Company Employees Describe Very Little Worker Movement Between the Two Close Ad-Tech Rivals

Recently, Taboola (TBLA) said in an SEC filing that the company and the ad-tech industry were the subject of a DOJ criminal labor antitrust investigation. On Tuesday, Outbrain—Taboola’s closest rival, which is planning to go public—said in an SEC filing the department’s antitrust division notified it on April 29 that it, too, was the subject […]

Jul 01, 2021 Read Now >
Jun 24, 2021

Higher Education Policy: Education Department Investigating Borrower Defense Claims Amid Push to Process Claim Backlog, Expand Grounds for Approval, and Discharge Loans; Schools Likely to be Held Liable for Cancelled Loans, Experts Say

The Department of Education is adjudicating borrower defense to repayment claims submitted by former students of Zovio Inc (ZVO), Strategic Education Inc (STRA), and Lincoln Educational Services Corp (LINC). Individuals whose borrower defense applications are approved will be granted student loan cancellation. Unlike the Betsy DeVos-led Department that did not aggressively review claims or hold […]

Jun 24, 2021 Read Now >
Jun 21, 2021

Aon/Willis Towers Watson: DOJ Draws Public Interest-Minded Judge in Suit to Block Broking, Benefits Tie-Up

DOJ’s suit to block Aon’s (AON) purchase of rival insurance broking giant Willis Towers Watson (WLTW) won a potentially sympathetic ear last week when D.C. District Court Judge Reggie Walton was assigned to oversee the case against the $30 billion merger, attorneys familiar with the judge told The Capitol Forum. Walton is a deliberate, methodical […]

Jun 21, 2021 Read Now >
Jun 15, 2021

Aon/Willis Towers Watson: DOJ Staff, Companies At Odds Over Deal’s Impact on Multinational Customers

This article has been updated to include the companies and DOJ’s arguments supporting their positions. DOJ staff informed Aon (AON) and Willis Towers Watson (WLTW) representatives at a meeting last week that the companies’ remedy offer doesn’t sufficiently address the department’s concerns about their $30 billion merger shrinking broking options for large multinational companies, sources […]

Jun 15, 2021 Read Now >
Jun 10, 2021

Aon/Willis Towers Watson: Brokerage Expands Litigator Wall’s Role in Talks with DOJ

Aon (AON) has expanded a prominent trial lawyer’s role in engaging with DOJ on its proposed $30 billion Willis Tower Watson (WLTW) buyout, indicating the insurance brokerage is preparing for litigation even as it participates in settlement talks with the department, sources familiar with the matter said. The Aon move resembles the dual-track strategy that […]

Jun 10, 2021 Read Now >
Jun 10, 2021

InnovAge: Company to Undergo Rare Focused Audit; Penalties Can Vary Depending on the Severity of the Findings

Regulators will conduct a focused audit of InnovAge’s (INNV) programs in Colorado later this month, according to a source familiar with the matter, with auditors investigating the quality and timeliness of care that InnovAge provides. The new audit comes after regulators in California and Colorado conducted an unannounced audit of the company’s facilities last month […]

Jun 10, 2021 Read Now >
Jun 08, 2021

Facebook/Giphy: UK, EC Dial Up Antitrust Scrutiny as Giphy Acquisition Hangs By a Thread

The UK’s competition watchdog last week intensified scrutiny of Facebook’s (FB) dominance in digital advertising, further complicating the authority’s ongoing review of the social network giant’s completed acquisition of Giphy. The Competition and Market Authority antitrust probe—which is looking into whether Facebook unfairly uses the advertising data it collects—was jointly announced with the European Commission, […]

Jun 08, 2021 Read Now >
Jun 04, 2021

Meituan: Antitrust Agency Close to Wrapping Up Probe’s Initial Phase; Significant Penalties Seen

China’s antitrust authority is close to wrapping up the initial phase of its probe into online food-delivery giant Meituan (3690: HK), sources familiar with the matter said. The State Administration for Market Regulation (SAMR) on April 26 launched its investigation into the Hong Kong-listed tech giant over the company’s practice of requiring merchants to sell […]

Jun 04, 2021 Read Now >
Jun 03, 2021

Aon/Willis Towers Watson: Brokerage’s Health Benefits Divestiture Plan Elicits Poker-Faced DOJ Response

Aon (AON) has proposed to DOJ staff an offer to divest two pieces of its health benefits business to address the department’s antitrust concerns with the insurance brokerage’s planned $30 billion buyout of rival Willis Towers Watson (WLTW), sources familiar with the matter said. But as with previous offers Aon has made to resolve DOJ’s […]

Jun 03, 2021 Read Now >
Jun 03, 2021

Aon/Willis Towers Watson: Brokerage to Divest Retirement Consulting, Exchange Businesses

Aon (AON) in a statement today said it would divest for $1.4 billion its U.S. retirement consulting and retiree health exchange businesses to two separate buyers, responding to DOJ antitrust concerns about the insurance brokerage’s proposed $30 billion buyout of rival Willis Towers Watson (WLTW). Under the agreements, Aon would sell its U.S. retirement consulting […]

Jun 03, 2021 Read Now >
Jun 03, 2021

Aon/Willis Towers Watson: Brokerage’s Health Benefits Divestiture Plan Elicits Poker-Faced DOJ Response

Aon (AON) has proposed to DOJ staff an offer to divest two pieces of its health benefits business to address the department’s antitrust concerns with the insurance brokerage’s planned $30 billion buyout of rival Willis Towers Watson (WLTW), sources familiar with the matter said. But as with previous offers Aon has made to resolve DOJ’s […]

Jun 03, 2021 Read Now >
Jun 01, 2021

Aon/Willis Towers Watson: DOJ Considers Proposed Remedy While Stepping up Trial Preparation

As DOJ’s review of Aon’s (AON) proposed Willis Towers Watson (WLTW) buyout enters its late stages, the department is pursuing a dual-track strategy, engaging in settlement talks with the insurance brokerages while stepping up trial preparations in case it decides to challenge the $30 billion deal, sources familiar with the matter said. Within the last […]

Jun 01, 2021 Read Now >
May 27, 2021

InnovAge: Colorado Regulators Conduct Surprise Audit of PACE Facilities in Coordination with CMS; Sacramento Facility Also Under Scrutiny

Yesterday, Colorado state regulators in coordination with the Centers for Medicare and Medicaid Services initiated a surprise audit of InnovAge (INNV) facilities in the state. InnovAge’s facility in Sacramento, California also received a surprise visit by regulators. InnovAge is the country’s largest provider of services under the government Program for All-Inclusive Care for the Elderly, […]

May 27, 2021 Read Now >
May 20, 2021

Credit Acceptance Corporation: No Final Resolution of Massachusetts Litigation as Company Gets Extension to Answer Complaint

Yesterday, the Commonwealth of Massachusetts and Credit Acceptance Corporation (CACC) entered into a stipulation granting the company until June 3 to file and serve an answer to the Massachusetts Attorney General’s complaint marking the fifth extension granted to the company. It is common for litigants engaged in settlement negotiations to extend due dates in lawsuits. […]

May 20, 2021 Read Now >
May 19, 2021

Rekor Systems: Legislation to Establish an Uninsured Vehicle Enforcement Program in Tennessee Moved to Next Session; Oklahoma Intends to Renew Contract

A bill in the Tennessee legislature that would establish a program to identify uninsured motor vehicles will not be reintroduced until the 2022 legislative session, dealing a blow to Rekor Systems (REKR), which hopes to contract with the state for the new program. The bill is currently scheduled for the legislature’s summer study. “The summer […]

May 19, 2021 Read Now >
May 13, 2021

Aon/Willis Towers Watson: Divestitures’ Impact Divides Deal Critics as DOJ Weighs Proposal

Opponents of Aon’s (AON) proposed Willis Towers Watson (WLTW) acquisition and other industry participants are divided over whether the insurance brokerages’ divestiture plan would address enforcers’ antitrust concerns with the $30 billion deal, sources familiar with the matter said. One reinsurance industry participant critical of the original deal told The Capitol Forum that Aon’s $3.6 […]

May 13, 2021 Read Now >
May 10, 2021

InnovAge: Current and Former Employees Say Company’s Understaffing of Facilities and Lack of Providers is Resulting in Months and Years of Delayed Care for Elderly Patients

Six current and recent employees of InnovAge (INNV), the country’s largest provider of senior healthcare under the government’s Program for All-Inclusive Care for the Elderly (PACE), tell The Capitol Forum that the company is enrolling patients into its program at a rate that far exceeds its capacity to appropriately care for them. In the opinion […]

May 10, 2021 Read Now >
May 07, 2021

Aon/Willis Towers Watson: EC Said Set to Approve Remedies, With Vestager On Board

The European Commission is set to approve remedies proposed by Aon (AON) to secure regulatory approval for the company’s $30 billion acquisition of rival Willis Towers Watson (WLTW), The Capitol Forum has learned. EU competition chief Margrethe Vestager is said to be on board with the remedies, paving the way for EC clearance without a […]

May 07, 2021 Read Now >
May 07, 2021

Rekor Systems: Bill for Uninsured Motorist Program Unlikely to Advance in Texas; Similar Bill Dead in Florida

A bill to establish a traffic camera program to track uninsured motorists in Texas will likely not make it out of committee in the state legislature before an important May 10 deadline, according to a political activist familiar with Texas legislative issues. A similar piece of legislation will also not advance in the Florida legislature, […]

May 07, 2021 Read Now >
May 03, 2021

Credit Acceptance Corporation: No Final Resolution Yet in Massachusetts Litigation; Resolution Will Likely Require Company to Agree to Terms Governing its Conduct in the State Going Forward

On April 29, Credit Acceptance Corporation (CACC) said that it had reached an agreement in principle to settle its pending litigation with Massachusetts and as a result it recognized a contingent loss of $27.2 million in Q1 2021. Some observers have interpreted Credit Acceptance’s statement to mean that there is a settlement in place. But […]

May 03, 2021 Read Now >
Apr 21, 2021

Diversified Gas and Oil: Analysis of TCF Production Database Raises Questions Surrounding Certain Wells Brought Back to Production and Company’s Consent Order with Pennsylvania

In Pennsylvania, Diversified Gas and Oil (LON: DGOC) brought 482 non-producing wells online in 2019, 268 of which reported exactly the threshold level of production that exempts the company from a tighter retirement schedule—100 thousand cubic feet (mcf) of natural gas—pursuant to its 2019 Consent Order and Agreement with the Pennsylvania Department of Environmental Protection […]

Apr 21, 2021 Read Now >
Apr 10, 2021

iRhythm: Novitas Revises Fee Schedule, ECG Monitoring and Analysis Payment Increases by Roughly 250% but Remains Significantly Lower than Previous Rates

Earlier this morning, Medicare Administrative Contractor Novitas released an update to its 2021 fee schedule, increasing the rate for electrocardiographic monitoring (ECG) and analysis by roughly 250% and making the new prices retroactive to January 1. The new rate, however, is still significantly lower than what iRhythm (IRTC) had been hoping for in 2021 and […]

Apr 10, 2021 Read Now >
Apr 06, 2021

Natera: Company Under Investigation in Georgia for Potentially Overcharging Medicaid Program

Genetic testing company Natera, Inc (NTRA) is under investigation by the Georgia Department of Community Health for potentially overbilling the state’s Medicaid program, according to a source familiar with the matter. The opening of the investigation comes after a Capitol Forum report identified over $4 million in state Medicaid payments to Natera in 2018 and […]

Apr 06, 2021 Read Now >
Mar 31, 2021

Siemens Healthineers/Varian: Medical Device Tie-up Nears Chinese Antitrust Approval

German medical device maker Siemens Healthineers (ETR: SHL) is close to securing approval from China’s antitrust authority for its proposed $16.4 billion acquisition of U.S. radiation oncology giant Varian Medical Systems (VAR), sources familiar with the matter said. Approval from the State Administration for Market Regulation (SAMR) is the last major regulatory hurdle facing the […]

Mar 31, 2021 Read Now >
Mar 29, 2021

InnovAge: Regulators, Former Employees Raise Quality of Care Concerns at Company’s PACE Facilities

As InnovAge (INNV), the country’s largest for-profit provider of senior day care and health services under the Medicare and Medicaid PACE program, seeks to expand nationally, former employees, regulators, and families of patients are raising concerns about the company’s business model, which appears to prioritize increasing its government funding over providing patient care. At issue, […]

Mar 29, 2021 Read Now >
Mar 17, 2021

Credit Acceptance Corporation: Consumer Allegations of Inaccuracies in Loan Contracts, Improper Repossessions Raise Questions Regarding Accuracy of Company’s Securitization Disclosures

As part of its ongoing investigation into Credit Acceptance Corporation (CACC), the New York Attorney General notified the company in November that it is considering bringing claims under the New York Martin Act in connection with the company’s origination and securitization practices, according to the company’s most recent annual filing. The Martin Act is a […]

Mar 17, 2021 Read Now >
Mar 03, 2021

Salesforce/Slack: Company Still Aims to Bypass CMA Probe Despite Deeper U.S. Review

Salesforce (CRM) is said to remain confident of avoiding a UK Competition and Markets Authority probe into its planned $27.7 billion acquisition of messaging platform Slack (WORK) despite the U.S. DOJ’s recent decision to open an in-depth, second request review into the transaction. The San Francisco-based customer relationship management (CRM) company is said to have […]

Mar 03, 2021 Read Now >
Mar 03, 2021

Salesforce/Slack: Company Still Aims to Bypass CMA Probe Despite Deeper U.S. Review

Salesforce (CRM) is said to remain confident of avoiding a UK Competition and Markets Authority probe into its planned $27.7 billion acquisition of messaging platform Slack (WORK) despite the U.S. DOJ’s recent decision to open an in-depth, second request review into the transaction. The San Francisco-based customer relationship management (CRM) company is said to have […]

Mar 03, 2021 Read Now >
Feb 09, 2021

Natera: Use of Lucrative CPT Code Could Draw Scrutiny from Georgia Regulators

Over the course of two years, genetic testing company Natera (NTRA) billed Georgia’s state Medicaid program more than 6,700 times for one expensive and complex test for rare genetic disorders, receiving over $4.2 million dollars from the state and its managed care organizations. A Capitol Forum analysis of claims data received via FOIA request, however, […]

Feb 09, 2021 Read Now >
Feb 05, 2021

TransDigm: DoD OIG, GAO Reports Due in Early Spring with Other Reports Pending; Findings Could Draw Renewed Congressional Scrutiny to Company

Several upcoming federal reports and investigations into aerospace parts supplier TransDigm (TDG) as well as investigations into government contracting practices more broadly could increase focus on the company as Congress sits down to negotiate the FY 2022 National Defense Authorization Act. Currently, there are four ongoing investigations into TransDigm itself and contracting practices associated with […]

Feb 05, 2021 Read Now >
Jan 13, 2021

Natera: Kentucky Attorney General Investigating Billing Practices, Currently Assessing Potential Damages to State Medicaid Program

The Kentucky Attorney General is currently investigating Natera’s (NTRA) billing practices with the state’s Medicaid program, according to that office’s response to a records request and a source familiar with the matter. The Capitol Forum had requested any documents related to Natera’s billing practices generated by the office in 2020. While the Attorney General disclosed […]

Jan 13, 2021 Read Now >
Dec 01, 2020

iRhythm: CMS Declines New Pricing for ECG Monitoring, Maintains Status Quo Pricing

The Center for Medicare and Medicaid Studies has declined to approve a new, higher reimbursement rate for electrocardiographic monitoring, according to the 2021 Physician Fee Schedule published today. Instead, CMS is retaining the de facto pricing for ECG monitoring negotiated between Medicare Administrative Contractors and healthcare providers while it studies the issue further and searches […]

Dec 01, 2020 Read Now >
Nov 13, 2020

iRhythm: Publication of Final Physician Fee Schedule Likely on December 1 or 2 Despite Existing Delay

The Center for Medicare and Medicaid Services (CMS) will likely not publish the final Physician Fee Schedule until December 1 or 2, according to a source familiar with CMS processes. The agency is currently reviewing its proposed Physician Fee Schedule for 2021, which sets reimbursement rates for a wide variety of medical services and equipment, […]

Nov 13, 2020 Read Now >
Nov 05, 2020

Penumbra: Jet 7 Device Continues to Malfunction During Routine Use, According to MAUDE Data

Data submitted to the FDA’s device malfunction database, known as MAUDE, over the past three months indicates that Penumbra’s (PEN) Jet 7 catheter continues to break under routine use, even after the company’s July 27 letter to physicians. Penumbra’s July 27 letter warned physicians about several issues with the Jet 7 catheter, in particular its […]

Nov 05, 2020 Read Now >
Nov 05, 2020

Penumbra: Jet 7 Device Continues to Malfunction During Routine Use, According to MAUDE Data

Data submitted to the FDA’s device malfunction database, known as MAUDE, over the past three months indicates that Penumbra’s (PEN) Jet 7 catheter continues to break under routine use, even after the company’s July 27 letter to physicians. Penumbra’s July 27 letter warned physicians about several issues with the Jet 7 catheter, in particular its […]

Nov 05, 2020 Read Now >
Oct 23, 2020

iRhythm: Commenters Provide Invoices and Analysis to CMS Arguing for Lowered ECG Reimbursement; Final Decision Likely After November 1

On August 4, the Centers for Medicare and Medicaid Services released its annual update to the Physician Fee Schedule (PFS), which establishes reimbursement rates for services covered under the federal health plans. The proposed 2021 rates include new Category I reimbursement codes for external electrocardiographic (ECG) heart monitoring, setting these rates at $375.83 & $386.16 […]

Oct 23, 2020 Read Now >
Oct 16, 2020

Penumbra: Doctors Publish Case Studies on Jet 7 Malfunctions to Highlight Risk to Peers, With More Studies Coming

Yesterday, three doctors in Singapore published an article in the American Journal of Neuroradiology detailing two device malfunctions involving Penumbra’s (PEN) Jet 7 catheter titled “Can a Stent Retriever Damage the JET 7 Reperfusion Catheter?” The Capitol Forum has previously reported on problems relating to the Jet 7, which can unintentionally expand in the arteries […]

Oct 16, 2020 Read Now >
Sep 04, 2020

Penumbra: Majority of Jet 7 Malfunctions Unrelated to Contrast Injection, According to FDA Database

In response to an increase in injuries and deaths involving Penumbra’s (PEN) Jet 7 XTRA FLEX catheter, the company sent a letter to doctors cautioning them against injecting contrast media, used to map the arteries of the brain during blood clot removal procedures, through the catheter. Doing so could result in the unintentional expansion of […]

Sep 04, 2020 Read Now >
Jun 11, 2020

Benefytt Technologies Inc: Total Insurance Brokers Took Steps to Manipulate Exam Scores to Ensure Brokers Were Certified to Sell Medicare Products During 2019 Annual Enrollment Period, According to Sources

Ahead of the 2019 annual enrollment period, Total Insurance Brokers (TIB) employed various strategies to manipulate test scores to ensure that its brokers obtained a passing score on the America’s Health Insurance Plans (AHIP) Medicare examination, according to a Capitol Forum investigation. The strategies included directing agents who had previously obtained passing scores to act […]

Jun 11, 2020 Read Now >
May 01, 2020

AbbVie/Allergan: Commission Set to Vote to Clear Biopharma Tie-up

The Federal Trade Commission is set to vote to accept a consent order clearing the way for AbbVie (ABBV) to close its $63 billion acquisition of biopharma giant Allergan (AGN), sources familiar with the matter said. The final commission vote is expected within the next few days, the sources said. FTC clearance is the last […]

May 01, 2020 Read Now >
Apr 03, 2020

AbbVie/Allergan: Settlement Package Secures Front Office Sign-Off, Moves to Commission Level

An FTC settlement package that would clear the way for AbbVie (ABBV) to close its $63 billion acquisition of biopharma giant Allergan (AGN) has won a positive recommendation from Bureau of Competition Director Ian Conner and is now at the commission level awaiting a vote, sources familiar with the matter said. AbbVie and Allergan disclosed […]

Apr 03, 2020 Read Now >
Apr 03, 2020

AbbVie/Allergan: Unions, Consumer Groups Seek Strengthened Consent Order in Letter to FTC Chairman

A coalition of consumer groups and unions today wrote Federal Trade Commission Chairman Joe Simons requesting that the commission secure additional behavioral relief before voting out a consent order clearing AbbVie’s (ABBV) $63 billion acquisition of biopharma giant Allergan (AGN). In the letter reviewed by The Capitol Forum, the coalition said that without modifications including […]

Apr 03, 2020 Read Now >
Dec 17, 2019

Illumina/Pacific Biosciences: FTC Commissioners Plan Vote Today on Whether to Sue to Block Deal

FTC commissioners today plan to vote on whether to sue to block Illumina’s (ILMN) proposed $1.2 billion acquisition of Pacific Biosciences (PACB), a source familiar with the matter said. The companies’ representatives met last week with individual commissioners to make their case but weren’t told when a vote would occur, a separate source said. The […]

Dec 17, 2019 Read Now >
Dec 16, 2019

Roche/Spark: FTC Decision Awaits As Commissioners Go Silent on Questions

FTC commissioners have no more questions for Roche (SWX: ROG) or Spark Therapeutics (ONCE) regarding their proposed $4.3 billion tie-up as anticipation builds about the agency’s pending decision, sources familiar with the matter said. Typically, the lack of commissioner questions signals that the agency’s leadership is prepared to vote on a deal review. But as […]

Dec 16, 2019 Read Now >
Nov 06, 2019

Illumina/Pacific Biosciences: FTC Prepares to File Suit Next Month in Administrative Court to Block Deal

The FTC is preparing to sue next month in its administrative court to block Illumina’s (lLMN) proposed $1.2 billion acquisition of Pacific Biosciences (PACB), sources familiar with the matter said. For some time agency staff has been building a case, deposing third parties and lining up potential witnesses while rejecting the companies’ arguments that their […]

Nov 06, 2019 Read Now >
Nov 05, 2019

Roche/Spark: FTC Commissioners Set to Vote as Soon as This Week on Pharmaceutical Deal

FTC commissioners are set to vote as soon as this week on Roche’s (SWX: ROG) proposed $4.3 billion Spark Therapeutics (ONCE) acquisition, sources familiar with the matter said. The vote would occur several weeks after agency staff recommended the commission clear the deal unconditionally. That conclusion followed an in-depth investigation to decide whether the merger […]

Nov 05, 2019 Read Now >
Oct 24, 2019

Roche/Spark: FTC Staff Recommends Deal’s Unconditional Clearance

FTC staff reviewing Roche’s (SWX: ROG) proposed Spark Therapeutics (ONCE) acquisition have recommended the $4.3 billion deal be cleared unconditionally, sources familiar with the matter said. The staff reached the conclusion after an in-depth investigation that included issuing civil investigative demands, which are similar to subpoenas, to companies involved in hemophilia treatments, and interviewing doctors […]

Oct 24, 2019 Read Now >
Sep 24, 2019

Illumina/Pacific Biosciences: Skeptical FTC Staff Deposes Third Parties, Lines Up Trial Witnesses for Potential Section 2 Suit

As the FTC’s review of Illumina’s (ILMN) proposed $1.2 billion Pacific Biosciences (PACB) acquisition enters its late stages, agency staff has deposed third parties and lined up potential witnesses for trial, indicating the gene-sequencing firms haven’t convinced staff that their merger wouldn’t harm competition, sources familiar with the matter said. FTC staff has expressed particular […]

Sep 24, 2019 Read Now >
Aug 14, 2019

Roche/Spark: UK CMA Inquiry Creates Potential Timing, Venue Challenges

The UK Competition and Markets Authority’s (CMA) June move to start an inquiry into Roche’s (SWX: ROG) $4.3 billion acquisition of Spark (ONCE) not only creates a new competition hurdle to the deal’s close, but could also bolster the U.S. FTC’s ability to take a tough line on the biotech tie-up, Capitol Forum analysis indicates. […]

Aug 14, 2019 Read Now >
Jul 15, 2019

TransDigm: New OIG Audit Could Reveal Excessive Profits and Uncover Practices That Have Already Drawn Congressional and DOD Scrutiny

The Department of Defense Office of Inspector General’s new audit of TransDigm (TDG) could find that the company earned excessive profits and uncover contracting practices that have previously drawn scrutiny and the ire of both members of Congress and the Department of Defense, according to a Capitol Forum analysis of government contracting data. Unlike previous […]

Jul 15, 2019 Read Now >
Jun 01, 2018

Bayer/Monsanto: Complex Fix Demonstrates DOJ Commitment to Structural Remedies, but Creates Some Tension With Anti-Regulation Philosophy

In conditionally clearing Bayer’s $66 billion acquisition of agrochemical rival Monsanto, DOJ endorsed a settlement that deviates somewhat from its commitment to accept only straightforward and self-executing structural remedies. But in addressing the proposed deal, antitrust division chief Makan Delrahim bent policy prescriptions to the facts at hand, which didn’t fit neatly in boxes he […]

Jun 01, 2018 Read Now >
May 02, 2018

Northrop Grumman/Orbital ATK: DOD Leans Toward Recommending Deal’s Conditional Approval

The Defense Department is leaning toward recommending Northrop Grumman’s proposed Orbital ATK acquisition be conditionally cleared by the Federal Trade Commission, sources familiar with the matter said. FTC staff is nearing the end of its antitrust review of the two defense contractors’ planned merger and could make its own recommendation to the agency’s front office […]

May 02, 2018 Read Now >
Mar 13, 2018

Invitation Homes: Tenants Say Rental Homes Poorly Maintained, Violate Habitability Standards and Local Housing Codes, Company Deaf to Concerns

Company Update Tenants who lease houses from Invitation Homes, a leader in the single-family rental industry, are deceptively put into dwellings with maintenance issues, code violations and life-threatening safety risks, according to interviews with twenty current and former tenants and complaints filed with attorneys general in two states. The company additionally has failed to make […]

Mar 13, 2018 Read Now >
Mar 09, 2018

Bayer/Monsanto: EC Conditional Clearance Set for March 21, Negotiations with DOJ Continue

The European Commission (EC) is on track to conditionally clear the proposed Bayer/Monsanto merger on March 21, according to sources familiar with the matter. The date is sooner than many expected because the EC has until April 5 to decide. But European antitrust enforcers, in coordination with their U.S. counterparts at the DOJ, have been […]

Mar 09, 2018 Read Now >
Jan 23, 2018

Health Insurance Innovations: A Closer Look at Call Centers; On 3 of 5 Calls, Third Party Call Centers for HII Made False and Misleading Statements About LifeShield Insurance Policies

Company Update In our continuing investigation into whether Health Insurance Innovations (HII) sales representatives have misled potential customers, The Capitol Forum placed a series of calls over the past two weeks to numbers associated with HII-contracted insurance producers. In three of the five calls we placed, our reporters were given incorrect information that would have […]

Jan 23, 2018 Read Now >
Jan 19, 2018

Bayer/Monsanto: Bayer, BASF, DOJ Staff in End Stages of Negotiating Divestiture Deal

Bayer, BASF and DOJ staff are nearing the final stages of negotiating an agreement to ensure BASF will emerge as a strong No. 4 competitor in U.S. seeds and crop protection if the department clears the Bayer/Monsanto merger, sources familiar with the matter said. The staff plans to recommend within weeks to DOJ’s front office […]

Jan 19, 2018 Read Now >
Jan 18, 2018

Health Insurance Innovations: Background of Third Party Sellers Raises Questions Around Rigor of HII’s Vetting Process for Third Parties

Third-Party Update Health Insurance Innovations (HII) sells about 70 percent of the policies it administers through a network of independent call centers, CEO Gavin Southwell in an interview we conducted late last year. The policies, which HII administers, are underwritten by insurance companies. The company contends as a general proposition that it makes rigorous efforts […]

Jan 18, 2018 Read Now >
Dec 20, 2017

Bayer/Monsanto: DOJ Staff Seeks Statements from Industry Participants Detailing Seed Sector Complaints

DOJ staff reviewing Bayer’s bid for Monsanto are contacting agricultural industry players in search of farmers to testify or give statements about how the seed sector’s lack of competition has harmed their businesses, according to sources familiar with the matter. The Department staffers told the industry players they would use the information if the DOJ […]

Dec 20, 2017 Read Now >
Dec 04, 2017

Health Insurance Innovations: A Close Look at Relationship with Third-Party Call Centers; Company Could Potentially Be Held Liable for Actions of Centers

Company Update Health Insurance Innovations (HII) is a third-party administrator (TPA) that functions as a middleman between health insurers and customers looking for affordable health insurance plans. The short-term medical policies, ancillary insurance, and health benefit plans HII administers are sold outside of the ACA marketplace, and therefore are not considered qualifying health coverage under […]

Dec 04, 2017 Read Now >
Jun 12, 2017

TransDigm: Senator Warren Writes Letter Urging DoD OIG Investigation

On May 19th, Senator Elizabeth Warren wrote a letter to Glenn Fine, the Acting Inspector General of the Department of Defense, requesting that Mr. Fine “expeditiously open an investigation into TransDigm if you have not already done so.” Senator Warren’s letter also states that as a member of the Senate Committee on Armed Services she […]

Jun 12, 2017 Read Now >
Feb 03, 2017

TransDigm: Capitol Forum Analysis of Contract Data Indicates Prices Increase at a Higher Rate after TransDigm’s Acquisitions

Pricing Analysis In order to provide more insight into TransDigm’s acquisition strategy, we attempted to quantify how a company’s pricing for military spare parts changes after TransDigm acquires the company. Using contract data from Haystack Gold and a sample of 2,156 parts (as well as a subset that eliminated outliers), we calculated annualized price increases […]

Feb 03, 2017 Read Now >