US Prosecutors Gain Access to KKR Legal Communications in Antitrust Probe

The development stems from a sealed ruling issued last year by U.S. District Judge James Boasberg in Washington, D.C., which allowed the U.S. Department of Justice to examine documents that would typically remain protected under attorney-client privilege. Per Bloomberg, the materials reviewed by prosecutors included exchanges between KKR and Kirkland & Ellis LLP, a firm that has advised the private equity giant on numerous mergers in recent years.

The ruling, which has not been publicly disclosed, represents a notable escalation in what is described as the largest enforcement action tied to antitrust filing requirements. According to Bloomberg, such filings are required when companies pursue acquisitions that may raise competition concerns, and communications with legal counsel are ordinarily shielded from disclosure.

Related: DOJ Sues KKR Over Alleged Antitrust Violations in Premerger Filings

In rare circumstances, however, prosecutors can argue for exceptions to attorney-client privilege if they believe the communications may involve misconduct. Per Bloomberg, the court’s decision allowed investigators to review whether statements made during merger filings were incomplete or misleading.

Despite the ruling, discussions between KKR and the Justice Department continued throughout last year, according to Bloomberg. Those talks could lead to a broader settlement addressing multiple legal challenges facing the firm, including an ongoing civil lawsuit related to its merger disclosures as well as the parallel criminal investigation.

Source: Bloomberg