DealLawyers.com Blog

Last year, we blogged about the DOJ’s decision to file a lawsuit against KKR, in which it alleged that the buyout giant engaged in multiple failures to comply with the HSR Act’s pre-merger notification requirements. Last week, the parties filed a proposed settlement of that lawsuit with the SDNY. This excerpt from a White & Case memo summarizes the terms of the settlement:

On Wednesday, August 26, 2026, the DOJ filed a proposed settlement requiring KKR & Co. Inc. to pay a civil penalty of $250 million, more than 20 times any prior HSR penalty obtained by the DOJ. Associate Attorney General Stanley Woodward indicated that this proposed settlement “sends a powerful message” and shows that the DOJ “is committed to vigorous enforcement of the Act.”

This settlement comes after the DOJ alleged in January 2025 that the private equity sponsor “repeatedly violated the HSR Act” through “systemic” violations. Key allegations in the DOJ’s complaint included:

– Failure to submit responsive business documents required under Item 4 of the HSR Form

– Altering or removing content and pages in final Item 4 documents before submission to the FTC/DOJ as part of required HSR filings

– Failure to make HSR filings before consummating reportable transactions

The memo quotes a KKR spokesperson as saying that the organization determined that continuing the litigation would be a distraction to the organization & that KKR was pleased to put the litigation behind it. They also noted that their investors wouldn’t feel the bite, because KKR “will be fully reimbursed by outside law firms.” Yikes!!

The settlement comes on the heels of last month’s settlement of the FTC’s actions targeting Edwards Lifesciences & Genesis Medtech’s for alleged violations of the HSR Act. At the time, the $12 million fine that the companies agreed to pay was the largest ever for failing to make an HSR filing. I guess records were made to be broken.

– John Jenkins