The Federal Trade Commission withdrew its appeal seeking a preliminary injunction to stop Laboratory Corporation of America's acquisition of Westcliff Medical Laboratories. Even though Burlington, N.C.-based LabCorp acquired Westcliff, now based in Santa Ana, Calif., in June, the commission sought the injunction to prevent LabCorp from integrating the two companies pending the litigation.
Late News: FTC withdraws approval in LabCorp challenge
A district judge in Santa Ana declined the request in February. The FTC's complaint, issued Dec. 1, 2010, charged that the acquisition would lead to higher prices and lower quality in the Southern California market for the sale of laboratory testing services to physician groups and would leave only two significant laboratories in that region competing to provide testing services to most physician groups. The commission voted 4-1 to withdraw the appeal. Commissioner Julie Brill dissented and issued a separate statement saying an appeal would have allowed the 9th U.S. Circuit Court of Appeals to consider important principles of merger law. The FTC's administrative complaint remains pending.
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