United Airlines Wins Appeal of Denial of Preliminary Injunction

On May 23, 2011, the United States Court of Appeals for the Ninth Circuit affirmed the ruling of the United States District Court for the Northern District of California denying a preliminary injunction to block the merger of Cravath client, United Airlines, and Continental Airlines, which closed on October 1, 2010. Plaintiffs asserted claims under Section 7 of the Clayton Act seeking to enjoin the merger. The District Court denied plaintiffs’ motion for a preliminary injunction on September 27, 2010, after a two-day evidentiary hearing, and plaintiffs appealed that decision to the Ninth Circuit. The Ninth Circuit affirmed the denial of a preliminary injunction in the Section 7 case and rejected plaintiffs’ assertion that the “national market in air travel” is a relevant market for analysis of the merger.

The Cravath team included partner Stuart W. Gold and associates Rebecca Rettig, Hector J. Valdes, Karl C. Huth and Sarah S.B. Kessler.