Capital One and Discover Financial Services seek to dismiss a consumer lawsuit against their proposed $35 billion merger, arguing that the claims of reduced competition and higher prices are speculative.
United States, Bollywood Fever: Capital One and Discover Financial Services are vigorously defending their proposed $35 billion merger in a U.S. court, urging a Virginia judge to dismiss a consumer lawsuit that alleges the deal will stifle competition and lead to higher prices.
In a court filing on Monday, the companies argued that the consumers’ claims are “too contingent on unknown future events” to proceed while U.S. antitrust and regulatory bodies are still evaluating the merger.
“Their allegations of harm are entirely speculative, incoherent, uncertain, and not imminent,” the companies asserted in their filing.
U.S. District Judge Anthony Trenga, presiding over the Alexandria federal court, has scheduled a hearing for October 16.
Neither Capital One, Discover, nor the plaintiffs’ attorneys have responded to requests for comment, and the Justice Department has also remained silent on the matter.
The lawsuit, filed by two Capital One customers from Vermont and New Jersey in July, alleges that the merger would violate U.S. antitrust law.
The deal, if approved, would make Capital One the largest U.S. credit card issuer by balance and the sixth-largest bank by assets. U.S. antitrust law allows private civil lawsuits to challenge proposed mergers.
Capital One’s planned acquisition of Discover, announced in February, is expected to “inject greater competition” into the market, according to the company.
However, the proposed merger has faced opposition, with some members of Congress calling for U.S. regulators to block the deal.
The case, titled Baker v. Capital One Financial, is currently before the U.S. District Court for the Eastern District of Virginia, under case number 1:24-cv-01265.
Representing the plaintiffs are Brian Dunne and Yavar Bathaee of Bathaee Dunne, while Capital One is represented by Ryan Shores of Cleary Gottlieb Steen & Hamilton, John Moran of McGuireWoods, and Ryan McLeod of Wachtell, Lipton, Rosen & Katz. Discover’s legal team includes Daniel Richardson and Amanda Davidoff of Sullivan & Cromwell.
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