Court Dismisses Monopoly Claims Against Tempur Sealy

According to Bloomberg, Tempur Sealy International and Corsicana Mattress have been cleared from allegations that they maintained a monopoly in the mattress market after a federal judge dismissed a lawsuit filed by rival CVB Inc.

Judge David Barlow of the US District Court for the District of Utah ruled on Wednesday that CVB failed to present evidence of an antitrust conspiracy in its claims that it was excluded from the mattress market.

The lawsuit, which has been part of a broader legal battle within the industry, accused the two mattress giants and other defendants of unfairly limiting competition. However, Judge Barlow determined that CVB did not sufficiently prove that any deal restrained trade or violated antitrust laws.

The decision comes at a time when the mattress industry is under increased scrutiny. Earlier this year, the Federal Trade Commission (FTC) filed a separate lawsuit to block Tempur Sealy’s planned $4 billion acquisition, marking a significant “vertical” merger challenge.

Vertical mergers, involving companies that do not directly compete, have been difficult for U.S. regulators to block in court, making the FTC’s case particularly noteworthy.

Source: Bloomberg