DOJ Reinvigorates Scrutiny Of Interlocking Directorates

Last month, the U.S. Department of Justice's (DOJ) Antitrust Division announced that seven directors from the boards of five companies resigned in response to concerns that the directors' roles violated the prohibition against interlocking directorates under Section 8 of the Clayton Act.¹ These resignations follow previous statements by the DOJ that it intended to "reinvigorate" Section 8 enforcement, including a speech delivered earlier this year by Assistant Attorney General (AAG) Jonathan Kanter, who made clear that the Antitrust Division would be closely scrutinizing interlocking directorates.² This development highlights the need for companies to maintain an effective antitrust compliance program that carefully monitors board memberships and appointment policies to mitigate Section 8 risks.