FTC Files Joint Stipulation for Dismissal in LOS Acquisition Antitrust Dispute

The FTC and two large loan origination system (LOS) companies recently agreed to a joint stipulation for dismissal, dissolving a temporary restraining order and effectively permitting the proposed acquisition transaction between the two LOS companies.

The FTC obtained a temporary restraining order and a preliminary injunction enjoining the two companies from closing a proposed acquisition transaction.  The FTC alleged that the acquisition of the second largest LOS company in the country by the first largest would eliminate competition in a manner that would result in increased prices for consumers.  The proposed transaction included the acquisition of a product pricing and eligibility engine (PPE) owned by the LOS being bought.  The FTC alleged that acquiring the LOS plus this industry leading PPE would diminish the incentive of the purchasing company to improve its ancillary services and features.

The parties agreed that the PPE would be purchased by a separate company.  As a result of this “significant progress” made by the parties, the joint stipulation for dismissal dissolved the temporary restraining order obtained by the FTC, and the defendants agreed to refrain from closing the transaction before 11:59 p.m. EDT on the tenth calendar day following the signing and submission to the FTC of an Agreement Containing Consent Orders.