Premerger Reporting In Nonmerger Scenarios

Law360, New York (March 22, 2012, 1:20 PM EDT) -- The U.S. Department of Justice recently fined a company’s CEO $500,000 for personally violating the Hart-Scott-Rodino Act’s premerger notification requirements.[1] According to the DOJ, the fine was assessed because the executive failed to comply with the HSR Act’s reporting requirements before he acquired voting securities of his employer as part of his compensation as chairman and CEO, resulting in his holding voting securities valued in excess of the HSR Act’s reporting threshold.

Significantly, the complaint also identified two previous failures by the executive to comply with...
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