The US FTC sues to undo completed acquisition in the healthcare industry approved by the Bankruptcy Court (LabCorp / Westcliff)

The Federal Trade Commission has filed an administrative lawsuit seeking to undo Laboratory Corporation of America's (« LabCorp ») acquisition of Westcliff Medical Laboratories, Inc. (« Westcliff »). According to the agency's December 1 complaint, the merger will substantially lessen competition among providers of capitated clinical laboratory testing services to physician groups in southern California. The case represents the latest in a series of challenges to consummated transactions filed by the FTC during the past two years, keeping fresh the reminder that even closed deals are subject to agency review. It is also noteworthy because Westcliff had filed for bankruptcy protection and the sale to LabCorp had been approved by the bankruptcy court. LabCorp and Westcliff are clinical