Beware HSR Filing Requirements For Option Exercises
May 25, 2007, 12:00 AM EDT
Law360, New York (May 25, 2007, 12:00 AM EDT) -- This week the Federal Trade Commission obtained a $250,000 civil penalty against James Dondero, the operator of the Highland Capital hedge fund and a director of Motient Corporation, for making a late Hart-Scott-Rodino Act filing in connection with his 2005 exercise of options to acquire 10,000 Motient shares. The acquired shares had a value at the time of less than $300,000. Two factors led to the FTC action, both of which are instructive.
First, between 2002 and 2004, Highland Capital (which Dondero controlled) acquired a total...