U.S. says seven board directors resigned under antitrust pressure By Reuters
2022-10-20 05:25:04
more 
516

WASHINGTON (Reuters) -Seven directors on the boards of five companies have resigned because of the U.S. Justice Department's concerns over the directors holding similar board positions at rival companies, the department said on Wednesday.

Three directors resigned from the board of IT management software company SolarWinds Corp, one because the person was on the boards of both SolarWinds and rival Dynatrace (NYSE:) as a representative of the private equity company Thoma Bravo. Two others representing Thoma Bravo on the SolarWinds board also resigned, the department said.

SolarWinds said in a legal filing dated Oct. 14 that the three board members had decided to resign after receiving a letter from the Justice Department alleging that their board service broke antitrust law. The filing said that they "chose to resign rather than to contest the allegations."

The other two companies did not immediately respond to a request for comment.

The U.S. Justice Department's Antitrust Division said in a statement that it planned to reinvigorate enforcement of rules that do not allow people to serve on the boards of companies that compete against each other.

"Competitors sharing officers or directors further concentrates power and creates the opportunity to exchange competitively sensitive information and facilitate coordination – all to the detriment of the economy and the American public," said Jonathan Kanter, head of the Justice Department’s Antitrust Division, in a statement.

The push to enforce rules about interlocking directorates comes during a generalized increase in antitrust enforcement, including an unusually large number of merger challenges, many of which the government lost.

A director also resigned from education software company Udemy Inc's board of directors because of concerns that the person represented technology investment company Prosus (OTC:) on both Udemy's board and the board of rival Skillsoft Corp, the department said.

A spokesperson for Udemy said a director stepped down on Sept. 23 because of U.S. Justice Department concerns. "There was no finding that we violated any law, and we believe that we have resolved any concerns that the DOJ may have," the spokesperson said in a statement.

Directors also resigned from the board of Definitive Healthcare, Redwire Corp and CTS (NYSE:) Corp because they were on the boards of competing companies, the department said.

None of the other companies responded to a request for comment.

Statement:
The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。