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DOJ Sues KKR Over Alleged Antitrust Violations in Premerger Filings

By  |  January 14, 2025
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The US Department of Justice (DOJ) announced Tuesday that it has filed a civil lawsuit against KKR & Co, accusing the private equity giant of repeatedly bypassing federal premerger antitrust requirements. According to Reuters, the DOJ alleges that KKR avoided regulatory scrutiny on at least 16 transactions between 2021 and 2022, in violation of the Hart-Scott-Rodino (HSR) Act.

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    The lawsuit, filed in a Manhattan federal court, claims that KKR failed to meet mandatory disclosure obligations under the HSR Act, which requires companies to notify authorities of significant mergers and acquisitions before closing deals. The act also mandates the submission of key documents, including internal analyses and reports prepared for company leadership. Per Reuters, the Justice Department argued that KKR’s actions demonstrated a clear disregard for these legal requirements.

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    The DOJ and the Federal Trade Commission (FTC) jointly enforce the HSR Act and can impose hefty penalties on companies that fail to comply. As noted by Reuters, firms that breach the act can face fines exceeding $50,000 per day for each unreported or prematurely completed transaction.

    Read more: KKR Secures EU Antitrust Approval for $24 Billion Acquisition of Telecom Italia’s Fixed-Line Network

    Settlement discussions between the government and KKR had been ongoing for several months, but talks reportedly fell apart, leading to the filing of the lawsuit. In response, KKR took legal action of its own, filing a countersuit against the DOJ. The private equity firm is seeking a court ruling that it did not violate the HSR Act, disputing the allegations made by federal antitrust officials.

    The case underscores the heightened scrutiny private equity firms are facing from regulators. Both the DOJ and the FTC have increased efforts to hold companies accountable for compliance with premerger notification rules as part of broader enforcement of antitrust laws.

    Source: Reuters