Stay out of the penalty box: Important reminders about HSR Act compliance for officers and directors

A public company executive recently entered into a consent decree with the Federal Trade Commission (FTC) pursuant to which he agreed to pay US$609,810 in fines for acquiring additional voting shares in violation of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act), as amended.

The HSR Act applies to acquisitions of voting shares, controlling interests in non-corporate entities, and assets if HSR threshold tests, which are adjusted annually, are satisfied as a result and no exemption applies. If the HSR Act applies, the parties to the acquisition must file HSR notifications with the FTC and the Antitrust Division of the Department of Justice (DOJ) and observe a waiting period before they may close on the acquisition. Penalties for failure to comply with these requirements are currently up to US$41,484 a day for each day of the violation.

Read More: Stay out of the penalty box: Important reminders about HSR Act compliance for officers and directors


Download PDF Share Back To Listing
Loading data