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Berkshire Hathaway to Pay $896,000 Civil Penalty
Berkshire Hathaway Inc. has agreed to pay an $896,000 civil penalty to settle charges that it violated premerger reporting and waiting requirements when it acquired voting securities of USG Corp., the government announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Berkshire Hathaway for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976.
The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review.
Berkshire Hathaway is a Delaware corporation with its headquarters in Omaha, Nebraska. As a result of its acquisition of USG voting securities in December 2013, Berkshire Hathaway held approximately 28 percent of USG voting securities, valued at more than $950 million.
USG is a Delaware corporation with its headquarters in Chicago, Illinois.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the government. For a party in violation of the HSR Act, the maximum civil penalty is $16,000 a day, which could result in much higher fines.
The case is a reminder of the importance of complying with antitrust laws and regulations, and the consequences of failing to do so.
Berkshire Hathaway’s actions demonstrate a clear disregard for the law and a willingness to flout the rules in pursuit of profit.
The government has made it clear that it will take action against companies that violate antitrust laws, and Berkshire Hathaway’s fine is a prime example of this.
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Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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