McAndrews & Forbes Holdings Inc. agrees to pay penalty for HSR Act violation
25 June 2013Antitrust, Competition and Economic Regulation Alert
On 19 June 19 2013, the Department of Justice (DOJ), at the request of the Federal Trade Commission (FTC), filed a complaint against MacAndrews & Forbes Holdings Inc. (M&F) charging M&F with acquiring voting shares of Scientific Games Corporation (SG) in violation of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 as amended (the “HSR Act”). Under the HSR Act, parties must first file HSR notifications with the FTC and DOJ and observe a waiting period before acquiring voting securities, assets, or controlling interests in partnerships or limited liability companies if HSR threshold tests would be satisfied and no exemption would apply. Failure to comply with the HSR Act subjects parties to civil penalties of up to US$16,000 a day. DOJ also filed a proposed settlement agreement under which M&F agreed to pay civil penalties of US$720,000 to settle the charges.