Justice Department Goes On The Offensive Against Board Interlocks

This week, the Antitrust Division announced the resignation of seven directors from their corporate board positions in response to concerns their service may have violated Section 8 of the Clayton Act, a rarely-enforced statute that prohibits individuals from simultaneously serving on the board of directors of two or more competing corporations, also known as "interlocking directorates." The announcement comes after recent remarks by both Antitrust Division and Federal Trade Commission leadership warning of forthcoming enforcement and reports that several public companies had received formal warning letters regarding potential Section 8 violations.

This latest action makes good on the agencies' promises to reinvigorate Section 8 enforcement, and are likely to be just the first in a series of actions to bring increased focus and increased enforcement to this area of antitrust law, which has rarely been at the forefront of antitrust enforcement. Companies should be