New York – New York Attorney General Letitia James has joined forces with 17 other state attorneys general to demand a review of the merger settlement between Hewlett Packard Enterprise (HPE) and Juniper Networks, citing reports of corrupt backroom deals that led to its approval.
The coalition is calling for hearings in the Northern District of California to investigate any corrupt practices. AG James asserts that HPE’s reported influence over top DOJ officials, including secret side agreements, violates federal laws designed to prevent undue influence on merger settlements.
Reports indicate that senior leadership in the DOJ Antitrust Division opposed the merger but were overridden by officials with personal relationships to HPE consultants and lobbyists. One article details alleged ‘boozy backroom meetings’ between HPE representatives and DOJ officials at a Washington, DC club.
Two Antitrust Division attorneys appointed by the Trump administration were fired for opposing the settlement. Former Principal Deputy Assistant Attorney General Roger Alford has called it a ‘scandal’ that represents the ‘Rule of Lobbyists’ over the ‘Rule of Law’.
The proposed merger was expected to increase consumer costs by up to 14 percent. AG James and the coalition argue that if lobbying pressure and secret side arrangements are true, high-level political appointees at DOJ have breached public trust, violating the Tunney Act.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption|White Collar Crime
- Source: Official Source ↗
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