The US Justice Department has filed a civil lawsuit against KKR & Co. Inc. and 13 of its investment advisors and funds, alleging repeated violations of the premerger antitrust review process. The lawsuit, filed in the Southern District of New York, claims that KKR’s senior executives and deal teams evaded scrutiny for at least 16 transactions between 2021 and 2022.
The complaint alleges that KKR failed to provide complete and accurate information about its mergers and acquisitions, including altering documents, omitting required filings, and failing to report deals. The Justice Department says this allowed KKR to reap millions of dollars in revenue without proper scrutiny.
Acting Assistant Attorney General Doha Mekki stated that KKR’s systemic failures threatened the integrity of antitrust reviews and obscured market impact. The HSR Act requires parties to submit premerger filings, but KKR allegedly failed to comply with this requirement for over 100 transactions since 2021.
The lawsuit seeks civil penalties exceeding $650 million, as well as structural relief and other equitable measures. KKR’s global investment firm status and assets under management of over $500 billion are at risk if the company is found guilty.
KKR has been required to make more than 100 premerger filings under the HSR Act since 2021. The allegations against the company suggest a pervasive culture of noncompliance, with one employee stating “less is more” in response to the importance of providing accurate information during antitrust reviews.
Source: https://www.justice.gov/opa/pr/justice-department-sues-kkr-serial-violations-federal-premerger-review-law