WHATLEY KALLAS TO REPRESENT AMERICAN MEDICAL ASSOCIATION IN CVS-AETNA MERGER HEARING

Henry Quillen of Whatley Kallas will be representing the American Medical Association at an unprecedented evidentiary hearing on a challenge brought by the AMA and others to the merger between CVS and Aetna. The Department of Justice had challenged the merger in the U.S. District Court for the District of Columbia, but agreed to drop its challenge if the Aetna divested its Medicare prescription drug plan business to another company, WellCare. Under a law known as the Tunney Act, the Court was then required to determine if the divestiture remedied the problems that the Department of Justice identified. Such determinations are usually made with little fanfare, but here the Court allowed the AMA and other groups to file amicus briefs challenging the proposed remedy, and then scheduled a week-long evidentiary hearing with live witness testimony. The hearing will begin in mid to late May. If the Court finds that the proposed divestiture does not restore competition to pre-merger levels, it could send the Department of Justice, CVS, and Aetna back to the drawing board, even though CVS and Aetna have already largely merged.