California v. American Stores Co.

American Stores (defendant) completed a merger more than doubling its California supermarket presence; California (plaintiff), suing as a private antitrust plaintiff, argued the merger would harm consumers in dozens of cities and sought an injunction forcing American to divest the newly acquired stores. The district court ordered divestiture, but the court of appeals reversed, holding courts lacked authority to order that remedy under the relevant Clayton Act provision; California appealed.