Publications

HSR Act and Gun Jumping: Guidelines for Compliance

Summer 2006
Private Equity Developments - Summer 2006

The Department of Justice (“DoJ”) recently fined QUALCOMM Incorporated and Flarion Technologies Inc. $1.8 million in civil penalties for violating the prescribed 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (as amended, the “HSR Act”) because “the companies’ merger agreement required Flarion to seek QUALCOMM’s consent before undertaking certain basic business activities, such as making new proposals to customers. Further, although not required by the agreement, Flarion sought and followed QUALCOMM’s guidance before undertaking routine activities, such as hiring consultants and employees.”