Alerts

FTC Announces Settlement for HSR Violation

December 18, 2008

On Dec. 15, 2008, the Federal Trade Commission (“FTC”) announced the filing of a complaint in federal district court charging two related investment funds, ESL Partners LP (“ESL Partners”) and ZAM Holdings LP (“Zam Holdings”), with violating the Hart-Scott-Rodino Antitrust Improvements Act (“HSR Act”) by failing to make timely filings with the government prior to acquiring blocks of AutoZone Inc. (“AutoZone”) shares in September and October of 2004. ESL Partners and ZAM Holdings agreed to pay civil penalties of $525,000 and $275,000, respectively, to settle the charges. The HSR Act provides for a penalty of up to $11,000 for each day that a person is out of compliance with its notification and waiting period requirements. The settlement with these two firms highlights the FTC’s position that “the HSR Act and its filing requirements should be well known to companies and individuals making acquisitions and the significant civil penalties imposed here should reinforce the need to fully comply with the Act.”