A Harsh Reminder about the Danger of Pre-Closing Activities in M&A Transactions

A Harsh Reminder about the Danger of Pre-Closing Activities in M&A Transactions


By: Bernard (Barry) A. Nigro Jr., Maria R. Cirincione

On November 7, 2014, the Department of Justice (DOJ) required particleboard competitors Flakeboard America Limited (Flakeboard) and SierraPine to pay $5 million in penalties and to institute a ten-year antitrust compliance program because of inappropriate pre-closing conduct.  DOJ's allegations centered on three things:  (1) the parties' discussions and conduct relating to the planned closure of SierraPine's mill in Springfield, Oregon; (2) the movement of customers from the Springfield mill to Flakeboard; and (3) the sharing of SierraPine's customer and pricing information.

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