- 9 -
State of Cal. v. American Stores Co., 697 F. Supp. 1125 (C.D.
Cal. 1988). American Stores appealed the decision of the
District Court. The Court of Appeals for the Ninth Circuit
published its opinion in that appeal as State of Cal. v. American
Stores Co., 872 F.2d 837 (9th Cir. 1989). The Court of Appeals
affirmed the District Court's finding that California had shown a
likelihood of success on the merits of the case and possible
irreparable harm. The Court of Appeals, however, found that the
preliminary injunction ordered by the District Court was
tantamount to an indirect divestiture which was not a remedy
available to private plaintiffs under section 16 of the Clayton
Act. The United States Supreme Court granted certiorari to the
State of California. See California v. American Stores Co., 493
U.S. 916 (1989). Prior to granting certiorari, Justice O’Connor
entered a stay continuing the District Court’s injunction pending
further review by the Supreme Court. See California v. American
Stores Co., 495 U.S. 271, 278 (1990).
The Supreme Court reversed the judgment of the Court of
Appeals for the Ninth Circuit and remanded the case for further
proceedings. The Supreme Court held that divestiture is a form
of injunctive relief within the meaning of section 16 of the
Clayton Act and that the District Court had the authority to
divest the acquirer of any part of the acquirer’s ownership
interest in the acquired company. See id. The Supreme Court
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011