WASHINGTON (Legal Newsline) – The Department of Justice’s Antitrust division, at the request of the Federal Trade Commission (FTC), announced Oct. 28 that it filed a civil antitrust lawsuit against Fayez Sarofim for allegedly violating premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976.
Sarofim purportedly broke these rules when acquiring voting securities of Kinder Morgan Inc. in 2001, 2006 and 2012, and Kemper Corp. in 2007.
The department simultaneously submitted a proposed settlement, subject to approval by the court, under which Sarofim agreed to a $720,000 civil penalty. This resolves the lawsuit.
The HSR Act exists to make sure mergers are reviewed before they are completed. Federal courts can assess penalties for violations of the HSR Act. Penalties can reach $40,000 per day.
The settlement will go before public comment for 60 days before being published in the Federal Register. The Justice Department filed the lawsuit in U.S. District Court in Washington, D.C.