HSR Civil Penalty Suit Demonstrates Importance of Compliance Procedures to Track Holdings and Timing of Prior Filings

January 07, 2009
The Federal Trade Commission recently reached an $800,000 settlement with ZAM Holdings, L.P. and ESL Partners, L.P. relating to their failures to file Notification and Report Forms under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The violations resulted from an improper reliance on certain exemptions under the HSR Act in the acquisition of voting securities of AutoZone, Inc. in 2004. This update reviews the case, which reflects the importance of having in place a compliance system that tracks the expiration dates of any HSR filings made as well as the value and size of existing holdings and additions.