The FTC has sued to block the Tempur Sealy, Mattress Firm deal. What’s next?

WASHINGTON – Following up on the complaint it filed Tuesday with a federal court to block Tempur Sealy International’s acquisition of Mattress Firm, the Federal Trade Commission is now reaching out to companies and entities it spoke with during its lengthy investigation to share next steps.

In its complaint, the FTC has requested a federal judge to issue sign a temporary restraining order halting the acquisition by the end of the day Friday. If that is granted, the FTC will schedule an administrative hearing in Washington, during which some of the third parties could be required to testify. The issuance of the administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.

Richard Mosier, an attorney in the FTC’s mergers division, said the commission works to preserve the confidentiality of the information supplied by third parties for its investigations. Mosier said the FTC has a “very long list of people” it spoke with for information on the proposed acquisition.

Information shared with the FTC falls under the agency’s “standard protective order” that restricts who can have access to the information and what they can do with the information. A number of Tempur Sealy competitors and retail partners have told Furniture Today that they were interviewed by the FTC during its investigation. Some of have voiced concern about how the information will be shared.

According to a document Mosier shared, access to confidential information shared with the FTC is “limited to court personnel, FTC employees, the FTC’s experts and consultants hired to help us with our investigation and litigation, any witness or deponent who may have authored or received the information in question, and the outside counsel hired by the merging parties, their experts and consultants.  No executives or employees of the merging parties may access your information.”

For the federal court proceeding on the claim the FTC filed with the U.S. Court in the Southern District of Texas, the commission will ask for a court order limiting the access to third-party materials to “FTC staff, our consultants and to the parties’ outside attorneys and consultants.”

See also:

  • Tempur Sealy says FTC got decision on Mattress Firm acquisition wrong
  • Mattress Firm disappointed in FTC move to block Tempur Sealy deal

The post The FTC has sued to block the Tempur Sealy, Mattress Firm deal. What’s next? appeared first on Furniture Today.