Plaintiffs in multidistrict litigation against Aurora Dairy Corp. over claims that its “organic” milk products do not meet federal certification requirements have reportedly filed an unopposed notice of voluntary dismissal requesting that the court dismiss Whole Foods Market Group, Inc. from the case without prejudice. In re: Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL No. 08-1907 (E.D. Mo., motion filed December 13, 2008). While Whole Foods apparently did not sell Aurora’s organic milk, the company was named as successor-in-interest to Wild Oats, Inc., the chain acquired by Whole Foods in August 2007 and alleged to have sold the products. Whole Foods has reportedly argued that Wild Oats retained its assets and liabilities after the merger and has agreed to provide plaintiffs with discovery on that issue. According to plaintiffs’ counsel, “If, after that discovery, we agree with your analysis, we will move the court to strike Whole…
Category Archives Federal Trade Commission
According to a press report, the D.C. Circuit Court of Appeals has refused the request of Whole Foods Market, Inc. that the court reconsider, en banc, a July 2008 decision by a three-judge appellate court panel reviving the Federal Trade Commission’s antitrust challenge to the company’s merger with Wild Oats Markets, Inc. More information about the panel’s divided ruling appears in issue 269 of this Update. The commission will conduct administrative hearings on the merger in February 2009. While the merger was completed in August 2007, the commission could apparently try to stop further integration of the companies’ operations or require Whole Foods to sell some properties. In a statement, Whole Foods reportedly indicated its intent to vigorously defend the administrative proceedings, “even though we believe it is an unfair process and a violation of the company’s due process rights.” See Dow Jones Newswires, November 21, 2008. Meanwhile, a Chicago…
Whole Foods Market, Inc., which is currently litigating the FTC’s challenge to its merger with Wild Oats Markets, has submitted comments on the commission’s proposed merger rule changes and is urging others to join its “Ad Hoc Committee for FTC Fair Play” to do so as well. Apparently, the FTC will allow comments for only 30 days, which Whole Foods characterizes as “unusually short,” and has proposed (i) setting evidentiary hearings five months from the date of the complaint in merger cases, regardless of complexity, (ii) giving the commission the authority to decide “all dispositive pre-hearing motions,” (iii) giving the commission or an individual commissioner the authority to preside over discovery, and (iv) providing that “the norm should be that the Part 3 case can proceed even if a [federal] court denies preliminary relief.” Whole Foods contends, “The proposed regulatory changes collectively will create an antitrust double standard by exacerbating…
The FTC has appointed Acting Chief Administrative Law Judge D. Michael Chappell to oversee the antitrust hearing in the commission’s case against the 2007 merger of Whole Foods Market, Inc. and Wild Oats Markets, Inc. The administrative hearing is scheduled to begin February 17, 2009. FTC Commissioner J. Thomas Rosch presided over the scheduling conference in September 2008, and a news source indicated that Whole Foods objected to the possibility that he would be appointed to hear the matter. In its October 20 order, FTC notes that the FTC chair and commissioners, including Rosch, “are committed, subject to the bounds of reasonableness and fairness, to a just and expeditious resolution of any potential appeal from an Initial Decision filed by the Administrative Law Judge in this matter that may be taken to the full Commission.” The administrative proceedings are separate from collateral proceedings pursued in federal court. Further details about…
