U.S. Sues to Block Merger of Coach and Michael Kors Handbag Makers

Litigation attorney Jennifer Lada was quoted in a Reuters article about the Federal Trade Commission's (FTC) lawsuit seeking to block the $8.5 billion merger between luxury handbag makers Tapestry (parent of Coach) and Capri Holdings (owner of Michael Kors). The FTC argues the deal would eliminate direct competition between the flagship brands, potentially leading to higher prices and reduced wages and benefits for workers. Ms. Lada provided insights on how the FTC is using new guidelines released in 2023 to evaluating mergers' potential anti-competitive implications.

"The revised federal merger guidelines outlined that potential effects on labor like lowering wages or work conditions is a basis to challenge a merger, so that is a newer trend. It's not surprising since the agencies announced they'd do that but it is something new to test in court," she said.

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