WASHINGTON (Legal Newsline) — The Department of Justice announced a civil antitrust lawsuit Jan. 17, filed at the request of the Federal Trade Commission (FTC), against Mitchell Rales for alleged violations of Hart-Scott-Rodino (HSR) Act of 1976.
Rales was charged with violating the pre-merger notification and waiting period requirements of the HSR. He allegedly ignored the law when acquiring voting securities of Colfax Corporation in 2011 and Danaher Corporation in 2008.
At the same time the department filed the lawsuit, it filed a proposed settlement, subject to court approval. Rales agreed to the settlement and will pay $720,000 in civil penalties to resolve the lawsuit.
The HSR Act imposes waiting period requirements for transactions of certain sizes so that mergers can go through premerger antitrust review. Federal courts can assess penalties for violations of this rule, up to $40,000 per day.
The proposed settlement is consistent with the rules of the Tunney Act. The proposed settlement will be published in the Federal Register after a 60-day public comment period. After 60 days, the U.S. District Court for the District of Columbia can approve the settlement.