The U.S. Justice Department sued private equity firm KKR & Co. for allegedly withholding documents during government-required merger reviews.
Antitrust attorneys filed a civil complaint in federal court in Manhattan alleging KKR failed to comply with the merger disclosure requirements of the Hart-Scott-Rodino or HSR Act on more than a dozen deals.
KKR also filed a lawsuit against the Justice Department, seeking an order finding that it didn’t violate the law.
Settlement discussions between the private equity firm and the government had been ongoing for months but failed to produce an agreement.
Both the Justice Department and the Federal Trade Commission police the HSR Act and can fine companies more than $50,000 per day for failing to report a deal or closing one before a review is final. In addition to a notification form, the law requires companies undertaking merger to submit documents including studies, analyses and reports prepared for the company’s board or executives about a deal.