Record "Gun Jumping" Penalty Imposed By FTC

Oil companies ordered to pay $5.6 million for exerting beneficial control before the expiration of the mandatory HSR waiting period.

On January 7, 2025, the Federal Trade Commission ("FTC") filed and resolved a merger "gun jumping" action, imposing a penalty of $5.6 million on Verdun Oil Company II LLC ("Verdun"), XCL Resources Holdings, LLC ("XCL"), and EP Energy LLC ("EP") with the buyers (XCL and Verdun) and seller (EP) each agreeing to pay half. According to the complaint, Verdun and XCL exercised beneficial control over EP before the mandatory waiting period under the Hart-Scott-Rodino Act ("HSR Act") expired and its purchase of the company closed. This action marks the highest penalty ever imposed in a gun jumping action and follows an August 2024 gun-jumping settlement by the Antitrust Division of the U.S. Department of Justice ("DOJ").