Pinterest Directors, Interlocking Directorates, California 2024

Two high-ranking officials of Pinterest Inc. have been caught with their hands in the cookie jar, resigning from the Board of Directors of Nextdoor Holdings Inc. in response to the Antitrust Division’s ongoing enforcement efforts against interlocking directorates.

According to sources, the two directors who served on the boards of both Nextdoor and Pinterest resigned from the board of Nextdoor effective August 1, without admitting any liability. The move comes as a result of the Antitrust Division’s Section 8 enforcement efforts, which prohibit directors and officers from serving simultaneously on the boards of competitors.

Section 8, which Congress made a per se violation of the antitrust laws, prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. In response to the division’s Section 8 enforcement efforts, the two directors who served on the boards of both Nextdoor and Pinterest resigned from the board of Nextdoor effective August 1, without admitting liability.

The Antitrust Division’s enforcement initiative has led to fifteen interlocking director resignations from eleven boards. Deputy Assistant Attorney General Andrew Forman of the Antitrust Division stated, “We remain steadfast in our commitment to protect competition by preventing interlocking directorates that we believe violate Section 8 of the Clayton Act. Enforcement involving interlocking directorates will continue to be one of the top priorities of the Antitrust Division.”

Nextdoor is a Delaware corporation headquartered in San Francisco, and is a large social network that connects users, businesses, and other neighborhood stakeholders. Pinterest is also a Delaware corporation headquartered in San Francisco, and is a leading social network and image sharing service.

Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov.

The Antitrust Division’s ongoing enforcement efforts against interlocking directorates are a significant step in protecting competition and preventing violations of the antitrust laws. The actions of the two directors who resigned from the board of Nextdoor serve as a reminder of the importance of adhering to Section 8 of the Clayton Act and avoiding interlocking directorates.

Source: https://www.justice.gov/archives/opa/pr/two-pinterest-directors-resign-nextdoor-board-directors-response-justice-departments-ongoing