Lawsuit Against PetIQ, Inc. Filed by MoginRubin LLP

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Med Vets, Inc., et al. v. VIP Petcare Holdings, Inc., et al.

Antitrust law firm MoginRubin LLP filed a lawsuit on behalf of pet medication distributors, Med Vets, Inc. and Bay Medical Solutions Inc., against PetIQ, Inc. for alleged unlawful merger and other antitrust violations. The suit was filed last week on April 4 in the US District Court for the Northern District of California.

The complaint alleges that PetIQ’s acquisition of VIP Petcare Holdings, Inc. earlier this year will harm competition in the wholesale markets for prescription and restricted pet parasiticides. At stake is the supply of pet medications such as Frontline Plus and HeartGard available at non-veterinary retailers, such as Walmart and PetSmart, where these products are usually sold at much lower prices than what veterinary clinics charge.

The suit claims the merger will facilitate manufacturer control of supplies to retailers and otherwise create a bottleneck in the distribution chain of local retail outlets. The suit seeks to permanently enjoin the unlawful acquisition as a violation of Section 7 of the Clayton Act and seeks damages for price discrimination and attempted monopolization in violation of the Clayton Act and Sherman Act.

The plaintiff, Med Vets, Inc., is a licensed wholesale distributor of veterinary pharmaceutical products, mostly those requiring a prescription from a veterinarian. The other plaintiff, Bay Medical Solutions Inc., was a wholesale distributor of restricted over the counter (OTC) pet medications that was excluded from the business by PetIQ.

The case is Med Vets, Inc., et al. v. VIP Petcare Holdings, Inc., et al., 18-cv-02054 in the US District
Court for the Northern District of California (filed April 4, 2018). To view a copy of the complaint, go to: https://moginrubin.com/petiqs-deal-buy-veterinary-clinic-chain-will-choke-off-competition/.

With offices in Washington and San Diego, MoginRubin LLP concentrates on national, state, and international antitrust and competition litigation, including antitrust class actions and challenges to unlawful mergers. The firm also consults on company transactions and competition policy issues and is frequently called upon to comment to governmental bodies engaged in competition analysis.

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Sheilah Buack
MoginRubin LLP
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