Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Texas Attorney General Drops Out Of American Airlines Merger Lawsuit
Author: Joel R. Glucksman
Date: October 15, 2013
Key Contacts
Back
The U.S. Department of Justice saw its lawsuit against the American Airlines-US Airways merger weakened this week after Texas Attorney General Greg Abbott announced that his state was dropping out of the case.
The loss of the state’s support comes as a blow to the federal agency, because American Airlines is based in Dallas-Fort Worth and the merged company would be headquartered there, USA Today reports. Abbott noted that he reached a settlement with the airlines, under which the merged airline will maintain scheduled daily service to more than twenty airports in Texas. The airlines announced they were pleased with Abbott’s decision, which eliminates another obstacle in their push to merge.
“We are very pleased that Attorney General Abbott worked with us and carefully considered the facts of the merger, and we appreciate his willingness to engage in a productive dialogue,” American CEO Tom Horton and US Airways CEO Doug Parker said in a joint statement. “We know all of you are pleased with this news as well and we thank you for making sure your voices were heard.”
Although Texas dropped out of the suit, Arizona, Florida, Michigan, Pennsylvania, Tennessee, Virginia, and the District of Columbia still support the federal agency’s anti-trust case.
The Justice Department has faced several obstacles in its quest to prevent US Airways and American Airlines from merging. In September, U.S. Bankruptcy Judge Sean Lane approved American’s reorganization plan, allowing it to successfully emerge from Chapter 11 bankruptcy law protection. Exiting bankruptcy proceedings was a key provision for the American-US Airways agreement. As an added hit, the Justice Department’s request for a temporary delay in the lawsuit as a result of the government shutdown was quickly rejected by the federal court. The two-week trial is set to begin as scheduled on Nov. 25.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.