May 30, 2012

Prison Time for Altering Documents Submitted During Merger Investigation

As noted in this Weil alert, a corporate executive has pled guilty to criminal felony charges in connection with a company’s HSR premerger notification. He has agreed to serve five months in prison for obstruction of justice charges in connection with altering documents submitted to the DOJ and FTC as part of the premerger investigation of a proposed acquisition. The penalties obtained by DOJ against the executive, and previously against the company, highlight the caution and diligence entities should use in drafting documents in connection with an acquisition and preparing HSR filings and responses to DOJ and FTC information requests.