The US DOJ imposes penalties for premerger "Gun Jumping" (Smithfield Foods / Premium Standard Farms)

Last week’s $900,000 settlement between Smithfield Foods and the Antitrust Division of the U.S. Department of Justice (the “DOJ”) is a harsh reminder of the significant penalties parties to a merger may face for engaging in joint activities prior to clearing the pre-transaction notification process under the Hart Scott Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). Under the HSR Act, parties to a covered transaction are prohibited from transferring a “beneficial interest” or any “operational control” from the seller to the buyer prior to receiving HSR Act clearance — a violation known as “gun- jumping,” that carries a maximum fine of $16,000 per day. While this area of the law unfortunately remains murky, the Smithfield Foods settlement

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Auteur

  • Paul Hastings (San Diego)

Citation

Carl Sanchez, The US DOJ imposes penalties for premerger "Gun Jumping" (Smithfield Foods / Premium Standard Farms), 21 janvier 2010, e-Competitions January 2010, Art. N° 74784

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