DOJ Makes Good On Promise To Actively Prosecute Interlocking Directorships

Back in April 2022, Assistant Attorney General (AAG) Jonathan Kanter hinted very strongly that the Antitrust Division of the Department of Justice (DOJ) would be looking at Section 8 violations of the Clayton Act. That Section prohibits a person from serving on boards of companies that are competitors – also known as "interlocking directorates". 15 U.S.C. § 19. DOJ recently made good on this promise, announcing that seven directors resigned from board positions in response to DOJ Section 8 investigations. A little over a week later, it has been reported that DOJ sent civil investigative demands (CIDs) to large private equity firms related to potential Section 8 violations. Additionally, DOJ has issued multiple letters to public companies, individuals, and investors stating it may bring lawsuits this year, alleging violations of Section 8.