Third Point to pay monetary penalty to settle allegations of HSR Act violations

On 28 August 2019 investment advisor Third Point LLC (Third Point) and three funds under its control – Third Point Partners Qualified L.P., Third Point Ultra, Ltd., and Third Point Offshore Fund Ltd. (collectively, the Third Point Funds) – entered into a settlement agreement and agreed to pay US$609,810 in civil penalties based on the Federal Trade Commission's (FTC) allegations that the Third Point Funds violated the premerger notification and waiting period requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act).

The HSR Act applies to acquisitions of voting shares, controlling interests in noncorporate 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$42,530 per day for each day in which the parties are in violation of the HSR Act.

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