KKR has agreed to pay $250 million to settle a U.S. antitrust case over alleged violations of federal premerger filing rules. The penalty is the largest ever civil penalty for violations of the Hart Scott Rodino Act.
KKR has agreed to pay $250 million to resolve a U.S. antitrust case accusing the private equity firm of repeatedly violating federal premerger filing requirements, according to Reuters and the U.S. Department of Justice.
The case involves at least 16 transactions in which KKR allegedly failed to comply with requirements under the Hart Scott Rodino Antitrust Improvements Act. The law requires companies involved in certain large mergers and acquisitions to notify U.S. antitrust authorities before completing a transaction.
The Justice Department said the $250 million penalty is the largest ever civil penalty for violations of the Hart Scott Rodino Act, and more than 20 times larger than any previous HSR penalty.
According to the department, KKR's alleged violations occurred in 2021 and 2022. Prosecutors said the firm failed to make required filings in some transactions, altered documents submitted with filings and omitted required information from other submissions.
The Justice Department said KKR had been required to make more than 100 HSR filings since 2021, reflecting the firm's extensive acquisition activity.
KKR agreed to the settlement but disputed the government's characterization of its conduct. The firm said it acted in good faith and followed industry practices, Reuters reported.
The company also said the penalty would not affect its operations, investors or funds because outside law firms would reimburse the cost.
The proposed settlement was filed in federal court in New York. The case underscores the increasing scrutiny facing large private equity firms as U.S. regulators seek to ensure that mergers and acquisitions receive appropriate antitrust review before deals are completed.
KKR had more than $744 billion in assets under management as of the settlement announcement, according to the Justice Department.
Comments (0)
You must be logged in to post comments.
No comments yet. Be the first to start the conversation!