FROM: U.S. ENVIRONMENTAL
BP Products North America to Improve Spill Response Preparedness at Oil Terminals Nationwide
Company also agrees to pay $210,000 penalty for oil spill response violations at Maryland facility
WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced that BP Products North America, Inc. will pay a $210,000 penalty and implement an enhanced oil spill response program at its oil terminals nationwide, as well as a comprehensive compliance audit to resolve alleged violations of oil spill response regulations at its Curtis Bay Terminal in Md. The enhanced oil spill response program will help ensure that BP’s oil terminals are better prepared to respond to oil spills that could affect people's health and the environment.
EPA alleged that BP Products violated federal regulations requiring oil storage facilities to conduct drills and exercises to respond to oil spills at its Curtis Bay Terminal. The civil penalty is EPA’s highest to date for violations of oil drills and exercises requirements where there was no discharge of oil.
"Being prepared to respond to an oil spill can be the difference between dealing with a small, contained event or a full-blown environmental disaster," said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. "After twice failing to pass oil spill response exercises at its Curtis Bay facility, under the settlement, BP is required to put preventative measures into place at all of its terminals nationwide that will reduce the threat of oil spills and protect our nation’s valuable waterways. These measures also raise the bar for forward-looking companies seeking to ensure that their facilities are ready to respond quickly in the event of a spill."
"This agreement will help BP Products strengthen its spill response capabilities across the nation at 33 onshore oil terminals, implementing enhanced oil spill response measures, and requiring an independent auditor to evaluate a dozen high-risk onshore facilities for their readiness to respond to oil spills," said Ignacia S. Moreno, assistant attorney general for the Environment and Natural Resources Division of the Department of Justice. "Taking these steps will help instill a culture of readiness and preparedness that will help protect many communities, and the natural resources upon which they rely, from future harm."
Under the settlement filed today in federal court by the U.S. Department of Justice, BP Products will implement a first-of-its-kind program of spill prevention measures at its 33 non-refinery petroleum products terminals across the country.
As part of this program, the company will review and revise response plans for these facilities to ensure safeguards are tailored to the conditions at each facility. BP Products will also perform enhanced training, drills and exercises, exceeding regulatory requirements, and will repeat any failed drills and exercises within 90 days.
In addition, BP Products has agreed to an independent compliance audit of 12 of its marine and high-risk petroleum product terminal facilities. The audits will ensure that each audited facility is in compliance with spill response requirements, and to evaluate whether the facilities have resources to respond to major spills. The results of the compliance audits will also be incorporated into the enhanced spill prevention and response program being implemented at all of BP’s petroleum terminals.
EPA and the U.S. Coast Guard twice conducted unannounced government-initiated oil spill response exercises at the Curtis Bay Terminal. During these exercises, BP Products was required to demonstrate its response to a small scale discharge of fuel oil from the facility into Curtis Creek by being prepared to deploy 1,000 feet of oil containment boom within one hour and subsequently deploying the boom. On both occasions, the company did not complete the exercise in the allotted time and failed to adequately deploy the containment boom.
The Curtis Bay Terminal, which can store about 22 million gallons of oil, is located less than a quarter mile from Curtis Creek, a tributary of Curtis Bay, the Patapsco River, and the Chesapeake Bay.
High-risk onshore facilities that store oil, such as the Curtis Bay Terminal, must have a plan for responding to oil spills that includes employee training, spill response equipment, and a "worst case" contingency plan for containing and cleaning up spills.
Based on the failed drills, EPA cited the company for failing to adequately implement a response plan, failing to identify sufficient spill response resources at the facility, and deficiencies in the facility’s training, drills and exercises program.
The proposed consent decree is subject to a 30 day public comment period and final court approval.
Friday, October 12, 2012
Thursday, October 11, 2012
$366 MILLION SETTLEMENT IN NEW BEDFORD HARBOR CONTAMINATION CASE
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, October 10, 2012
AVX Corp. to Pay $366 Million in Settlement, Accelerating Cleanup of New Bedford Harbor Contamination in Massachusetts
The Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), along with the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection, have reached a settlement with AVX Corp. for $366.25 million plus interest regarding the New Bedford Harbor Superfund Site, in New Bedford, Mass.
The settlement paves the way for expedited implementation of the cleanup of the New Bedford Harbor Site at full capacity, providing more rapid protection of public health and the environment in addressing polychlorinated biphenyl (PCB) contaminated sediment in the harbor. PCBs are mixtures of up to 209 individual synthetic chlorinated compounds that are chemically stable, attach onto sediment particles readily and are resistant to biodegradation. PCBs are characterized as a probable carcinogen in humans.
The settlement follows an April 18, 2012, enforcement order issued by EPA to AVX to implement the ongoing cleanup work at the Harbor Site.
The "cash-out" settlement will be paid to the United States and the commonwealth jointly, and retained by EPA for use at the Harbor Site. The settlement provides the United States and the commonwealth with funding from AVX Corp. to continue to take action to remediate contamination. This includes dredging PCB-contaminated sediment and disposing the dredged sediment at an appropriately licensed off-site facility, in a confined aquatic disposal cell in the Lower Harbor, and in confined disposal facilities to be built along the shoreline. AVX’s payment resolves its remaining liabilities to pay for the costs of cleanup at the site. If approved by the court, this will be the largest single-site cash settlement in the history of the Superfund program.
"This agreement is the product of our commitment to pursue the government’s legal rights to defray costs borne by the Superfund and U.S. taxpayers in the cleanup of the New Bedford Harbor and to hold polluters ultimately accountable," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. "The recovery of these settlement funds will result in a more rapid reduction of human health and environmental risks and faster restoration of the harbor for the use and benefit of the public."
"With this settlement, we are making good on our pledge to the citizens of New Bedford to help clean their harbor. Cleanup work will proceed much faster with dedicated funding, and we will more rapidly be able to ensure that both human health and ecological health are being protected from exposure to PCBs in New Bedford Harbor," said Curt Spalding, the Regional Administrator of EPA’s New England Office. "Further, the settlement is consistent with EPA’s longstanding ‘polluter pays’ principle."
"This settlement is a victory for the people of the Commonwealth," said Governor Deval Patrick. "These funds will allow us to expedite the ongoing cleanup efforts at the Harbor Site in order to protect the environment and the public health of our residents."
"This settlement brings hundreds of millions of dollars to the City of New Bedford to clean up contamination that subjected people to unacceptable health risks and limited economic development," said Massachusetts Attorney General Martha Coakley. "The AVX Corporation is responsible for the contamination and will pay for the cleanup, not Massachusetts taxpayers. The settlement also significantly accelerates the schedule so the region can feel the economic benefits sooner rather than later."
"Thanks to this record settlement, those who live and work along the harbor will see a significant reduction in risk to humans and the environment, and people will not have to wait decades to begin to enjoy the harbor’s natural resources," said Commissioner Kenneth Kimmell of the Massachusetts Department of Environmental Protection. "As the natural resources return to vitality, so will tourism, recreation and redevelopment for harbor-side communities."
The settlement with AVX will provide the bulk of the estimated funding needed to allow EPA to complete the cleanup remedy for the New Bedford Harbor Superfund Site in approximately five to seven years, in contrast to the estimated 40 or more years it would take to complete the remedy under current funding of $15 million per year from the Superfund and payment of $1.5 million per year by the commonwealth.
From the 1940s to the 1970s, AVX’s corporate predecessor, Aerovox Corp., owned and operated what was known as the Aerovox facility, an electrical capacitor manufacturing facility located on the western shore of New Bedford Harbor. The United States and the commonwealth have determined that Aerovox discharged hazardous substances, including PCBs, into the harbor, and that Aerovox’s facility was the primary source of PCBs released into the harbor.
In 1983, the New Bedford Site was listed on the EPA’s Superfund National Priorities list, and the United States and the commonwealth of Massachusetts filed suit against AVX and other companies for injury to natural resources at the site from releases of PCBs. In 1984, the civil action was amended to include claims on behalf of EPA for recovery of response costs. AVX previously paid $66 million, plus interest, for past and future response costs and natural resource damages at the Harbor Site as a result of a 1992 settlement with the U.S. and the commonwealth. The governments reserved certain rights in that settlement through reopener provisions, which were exercised to bring about this current settlement. In addition, in 2010 AVX entered into a settlement with the U.S. to demolish the Aerovox facility, which was accomplished in 2011, and AVX entered into a separate settlement with the commonwealth to address the remaining contamination at the Aerovox facility.
Under the supplemental consent decree lodged today in federal district court in Boston supplementing and modifying the 1992 consent decree, AVX agrees to pay $366.25 million plus interest to settle its remaining liabilities for cleanup at the harbor site.
Wednesday, October 10, 2012
AVX Corp. to Pay $366 Million in Settlement, Accelerating Cleanup of New Bedford Harbor Contamination in Massachusetts
The Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), along with the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection, have reached a settlement with AVX Corp. for $366.25 million plus interest regarding the New Bedford Harbor Superfund Site, in New Bedford, Mass.
The settlement paves the way for expedited implementation of the cleanup of the New Bedford Harbor Site at full capacity, providing more rapid protection of public health and the environment in addressing polychlorinated biphenyl (PCB) contaminated sediment in the harbor. PCBs are mixtures of up to 209 individual synthetic chlorinated compounds that are chemically stable, attach onto sediment particles readily and are resistant to biodegradation. PCBs are characterized as a probable carcinogen in humans.
The settlement follows an April 18, 2012, enforcement order issued by EPA to AVX to implement the ongoing cleanup work at the Harbor Site.
The "cash-out" settlement will be paid to the United States and the commonwealth jointly, and retained by EPA for use at the Harbor Site. The settlement provides the United States and the commonwealth with funding from AVX Corp. to continue to take action to remediate contamination. This includes dredging PCB-contaminated sediment and disposing the dredged sediment at an appropriately licensed off-site facility, in a confined aquatic disposal cell in the Lower Harbor, and in confined disposal facilities to be built along the shoreline. AVX’s payment resolves its remaining liabilities to pay for the costs of cleanup at the site. If approved by the court, this will be the largest single-site cash settlement in the history of the Superfund program.
"This agreement is the product of our commitment to pursue the government’s legal rights to defray costs borne by the Superfund and U.S. taxpayers in the cleanup of the New Bedford Harbor and to hold polluters ultimately accountable," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. "The recovery of these settlement funds will result in a more rapid reduction of human health and environmental risks and faster restoration of the harbor for the use and benefit of the public."
"With this settlement, we are making good on our pledge to the citizens of New Bedford to help clean their harbor. Cleanup work will proceed much faster with dedicated funding, and we will more rapidly be able to ensure that both human health and ecological health are being protected from exposure to PCBs in New Bedford Harbor," said Curt Spalding, the Regional Administrator of EPA’s New England Office. "Further, the settlement is consistent with EPA’s longstanding ‘polluter pays’ principle."
"This settlement is a victory for the people of the Commonwealth," said Governor Deval Patrick. "These funds will allow us to expedite the ongoing cleanup efforts at the Harbor Site in order to protect the environment and the public health of our residents."
"This settlement brings hundreds of millions of dollars to the City of New Bedford to clean up contamination that subjected people to unacceptable health risks and limited economic development," said Massachusetts Attorney General Martha Coakley. "The AVX Corporation is responsible for the contamination and will pay for the cleanup, not Massachusetts taxpayers. The settlement also significantly accelerates the schedule so the region can feel the economic benefits sooner rather than later."
"Thanks to this record settlement, those who live and work along the harbor will see a significant reduction in risk to humans and the environment, and people will not have to wait decades to begin to enjoy the harbor’s natural resources," said Commissioner Kenneth Kimmell of the Massachusetts Department of Environmental Protection. "As the natural resources return to vitality, so will tourism, recreation and redevelopment for harbor-side communities."
The settlement with AVX will provide the bulk of the estimated funding needed to allow EPA to complete the cleanup remedy for the New Bedford Harbor Superfund Site in approximately five to seven years, in contrast to the estimated 40 or more years it would take to complete the remedy under current funding of $15 million per year from the Superfund and payment of $1.5 million per year by the commonwealth.
From the 1940s to the 1970s, AVX’s corporate predecessor, Aerovox Corp., owned and operated what was known as the Aerovox facility, an electrical capacitor manufacturing facility located on the western shore of New Bedford Harbor. The United States and the commonwealth have determined that Aerovox discharged hazardous substances, including PCBs, into the harbor, and that Aerovox’s facility was the primary source of PCBs released into the harbor.
In 1983, the New Bedford Site was listed on the EPA’s Superfund National Priorities list, and the United States and the commonwealth of Massachusetts filed suit against AVX and other companies for injury to natural resources at the site from releases of PCBs. In 1984, the civil action was amended to include claims on behalf of EPA for recovery of response costs. AVX previously paid $66 million, plus interest, for past and future response costs and natural resource damages at the Harbor Site as a result of a 1992 settlement with the U.S. and the commonwealth. The governments reserved certain rights in that settlement through reopener provisions, which were exercised to bring about this current settlement. In addition, in 2010 AVX entered into a settlement with the U.S. to demolish the Aerovox facility, which was accomplished in 2011, and AVX entered into a separate settlement with the commonwealth to address the remaining contamination at the Aerovox facility.
Under the supplemental consent decree lodged today in federal district court in Boston supplementing and modifying the 1992 consent decree, AVX agrees to pay $366.25 million plus interest to settle its remaining liabilities for cleanup at the harbor site.
Tuesday, October 9, 2012
CFTC ORDERS MONETARY SANCTIONS AGAINST WEIDONG GE FOR VIOLATING SPECULATIVE POSITION LIMITS
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
CFTC Orders China-based Weidong Ge and Sheenson Investments, Ltd. to Pay $1.5 Million in Monetary Sanctions for Violating Speculative Position Limits in Cotton And Soybean Futures
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Weidong Ge (Ge) and Sheenson Investments, Ltd. (Sheenson), both of Shanghai, China, agreed to pay disgorgement of $1 million and a $500,000 civil monetary penalty to settle CFTC charges that they exceeded speculative position limits in Soybean Oil and Cotton No. 2 futures contracts.
According to the CFTC order settling the matter, on February 26, 2009, Sheenson exceeded the all months combined speculative limit of 6,500 contracts in Soybean Oil by 350 contracts, and on March 10, 2009, Sheenson exceeded the same Soybean Oil limit by 88 contracts. The order also finds that from January 6, 2011 through February 11, 2011, Ge, by virtue of his ownership interest in Sheenson, Chaos Investment Co. Ltd. (British Virgin Islands), and Chaos Investment Ltd. (Hong Kong), exceeded the single month limit of 3,500 contracts in Cotton No. 2 by as much as 599 contracts and the all months limit of 5,000 contracts in Cotton No. 2 by as much as 389 contracts. On July 18, 2011, Ge, by virtue of his ownership in the above described companies, exceeded the single month limit in Cotton No. 2 by 143 contracts, according to the order.
In addition to ordering disgorgement and imposing a civil monetary penalty, the CFTC’s order requires Ge and Sheenson to cease and desist from violating the Commodity Exchange Act’s prohibition against exceeding speculative position limits.
CFTC Division of Enforcement staff members responsible for this action are Patrick M. Pericak, Daniel C. Jordan, Michael Loconte, Jeremy Cusimano, Rick Glaser and Richard Wagner, and Susan Donlan and Walter Spilka of the CFTC’s Division of Market Oversight.
CFTC Orders China-based Weidong Ge and Sheenson Investments, Ltd. to Pay $1.5 Million in Monetary Sanctions for Violating Speculative Position Limits in Cotton And Soybean Futures
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Weidong Ge (Ge) and Sheenson Investments, Ltd. (Sheenson), both of Shanghai, China, agreed to pay disgorgement of $1 million and a $500,000 civil monetary penalty to settle CFTC charges that they exceeded speculative position limits in Soybean Oil and Cotton No. 2 futures contracts.
According to the CFTC order settling the matter, on February 26, 2009, Sheenson exceeded the all months combined speculative limit of 6,500 contracts in Soybean Oil by 350 contracts, and on March 10, 2009, Sheenson exceeded the same Soybean Oil limit by 88 contracts. The order also finds that from January 6, 2011 through February 11, 2011, Ge, by virtue of his ownership interest in Sheenson, Chaos Investment Co. Ltd. (British Virgin Islands), and Chaos Investment Ltd. (Hong Kong), exceeded the single month limit of 3,500 contracts in Cotton No. 2 by as much as 599 contracts and the all months limit of 5,000 contracts in Cotton No. 2 by as much as 389 contracts. On July 18, 2011, Ge, by virtue of his ownership in the above described companies, exceeded the single month limit in Cotton No. 2 by 143 contracts, according to the order.
In addition to ordering disgorgement and imposing a civil monetary penalty, the CFTC’s order requires Ge and Sheenson to cease and desist from violating the Commodity Exchange Act’s prohibition against exceeding speculative position limits.
CFTC Division of Enforcement staff members responsible for this action are Patrick M. Pericak, Daniel C. Jordan, Michael Loconte, Jeremy Cusimano, Rick Glaser and Richard Wagner, and Susan Donlan and Walter Spilka of the CFTC’s Division of Market Oversight.
Monday, October 8, 2012
ABBOT LABORATORIES INC., MUST PAY $700 MILLION IN FINES AND FORFEITURES
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, October 2, 2012
Judge Imposes $500 Million Fine and $198.5 Million Forfeiture for Illegal Marketing
Pharmaceutical manufacturer Abbott Laboratories Inc. was sentenced by U.S. District Court Judge Samuel G. Wilson of the Western District of Virginia in connection with its guilty plea related to its unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration (FDA) the Justice Department announced today. Abbott, which was ordered to pay a criminal fine in the amount of $500 million, plus a forfeiture of $198.5 million, and $1.5 million to the Virginia Medicaid Fraud Control Unit, will also be subject to a five-year term of probation.
In May 2012, Abbott pleaded guilty to a criminal misdemeanor for misbranding Depakote in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Abbott’s criminal plea related to the misbranding of Depakote by promoting the drug to control behavioral disturbances in dementia patients and to treat schizophrenia when neither of these uses was approved by the FDA. Under the provisions of the FDCA, a company is required to specify the intended uses of a product in its new drug application to FDA. Once approved, the drug may not be marketed or promoted for "off-label" uses – unless the company applies to the FDA for approval of the additional use. In an agreed statement of facts, Abbott admitted that from January 1998 to December 2006 it marketed Depakote off-label to treat behavioral disturbances in dementia patients, and from January 2002 to December 2006, Abbott marketed Depakote off-label to treat schizophrenia.
Under the terms of the plea agreement, Abbott agreed to pay the second-largest criminal fine for a single drug, executed a fulsome statement of facts (with exhibits) revealing the extent of its unlawful conduct, admitted that it engaged in misleading statements, and submitted to a five-year term of probation. Under the terms of its probation, on an annual basis, Abbott’s CEO and board of directors will need to personally certify that the company is complying with the law.
Abbott’s guilty plea was part of a global resolution involving its illegal promotional activity. Abbott also entered into a civil settlement agreement under which it agreed to pay $800 million to the federal government and the states to resolve claims that its unlawful marketing and illegal remuneration practices caused false claims to be submitted to government healthcare programs. The parallel civil settlement covered a broader range of conduct by Abbott. The settlement resolved allegations that in addition to off-label marketing for dementia and schizophrenia, Abbott also marketed Depakote for other psychiatric conditions in adults, including depression, anxiety, obsessive-compulsive disorder, post-traumatic stress disorder, alcohol and drug withdrawal and psychiatric conditions in children, including conduct disorders, attention deficit disorder and autism.
In addition to the criminal and civil resolutions, Abbott also agreed to enter into an expansive 5-year corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services (HHS-OIG) that requires enhanced accountability, increased transparency, and wide-ranging monitoring activities conducted by both internal and independent external reviewers.
"Today’s sentencing confirms that the resolution we reached with Abbott in May is the right result. And it emphasizes the importance of the U.S. government’s coordinated efforts to combat health care fraud. We expect companies to make honest, lawful claims about the drugs they sell, we will be vigorous in our enforcement efforts when they break the law, and the courts will hold them accountable." said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.
"Abbott unlawfully targeted a vulnerable population, the elderly, through its off-label promotion. The court’s sentence makes clear that those who engage in such conduct will be prosecuted and held accountable," said Timothy Heaphy, U.S. Attorney for the Western District of Virginia.
Tuesday, October 2, 2012
Judge Imposes $500 Million Fine and $198.5 Million Forfeiture for Illegal Marketing
Pharmaceutical manufacturer Abbott Laboratories Inc. was sentenced by U.S. District Court Judge Samuel G. Wilson of the Western District of Virginia in connection with its guilty plea related to its unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration (FDA) the Justice Department announced today. Abbott, which was ordered to pay a criminal fine in the amount of $500 million, plus a forfeiture of $198.5 million, and $1.5 million to the Virginia Medicaid Fraud Control Unit, will also be subject to a five-year term of probation.
In May 2012, Abbott pleaded guilty to a criminal misdemeanor for misbranding Depakote in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Abbott’s criminal plea related to the misbranding of Depakote by promoting the drug to control behavioral disturbances in dementia patients and to treat schizophrenia when neither of these uses was approved by the FDA. Under the provisions of the FDCA, a company is required to specify the intended uses of a product in its new drug application to FDA. Once approved, the drug may not be marketed or promoted for "off-label" uses – unless the company applies to the FDA for approval of the additional use. In an agreed statement of facts, Abbott admitted that from January 1998 to December 2006 it marketed Depakote off-label to treat behavioral disturbances in dementia patients, and from January 2002 to December 2006, Abbott marketed Depakote off-label to treat schizophrenia.
Under the terms of the plea agreement, Abbott agreed to pay the second-largest criminal fine for a single drug, executed a fulsome statement of facts (with exhibits) revealing the extent of its unlawful conduct, admitted that it engaged in misleading statements, and submitted to a five-year term of probation. Under the terms of its probation, on an annual basis, Abbott’s CEO and board of directors will need to personally certify that the company is complying with the law.
Abbott’s guilty plea was part of a global resolution involving its illegal promotional activity. Abbott also entered into a civil settlement agreement under which it agreed to pay $800 million to the federal government and the states to resolve claims that its unlawful marketing and illegal remuneration practices caused false claims to be submitted to government healthcare programs. The parallel civil settlement covered a broader range of conduct by Abbott. The settlement resolved allegations that in addition to off-label marketing for dementia and schizophrenia, Abbott also marketed Depakote for other psychiatric conditions in adults, including depression, anxiety, obsessive-compulsive disorder, post-traumatic stress disorder, alcohol and drug withdrawal and psychiatric conditions in children, including conduct disorders, attention deficit disorder and autism.
In addition to the criminal and civil resolutions, Abbott also agreed to enter into an expansive 5-year corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services (HHS-OIG) that requires enhanced accountability, increased transparency, and wide-ranging monitoring activities conducted by both internal and independent external reviewers.
"Today’s sentencing confirms that the resolution we reached with Abbott in May is the right result. And it emphasizes the importance of the U.S. government’s coordinated efforts to combat health care fraud. We expect companies to make honest, lawful claims about the drugs they sell, we will be vigorous in our enforcement efforts when they break the law, and the courts will hold them accountable." said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.
"Abbott unlawfully targeted a vulnerable population, the elderly, through its off-label promotion. The court’s sentence makes clear that those who engage in such conduct will be prosecuted and held accountable," said Timothy Heaphy, U.S. Attorney for the Western District of Virginia.
Sunday, October 7, 2012
BIGLARI HOLDINGS INC. TO PAY $850,000 CIVIL PENALTY
FROM: U.S. DEPARTMENT OF JUSTICE
Violations Occurred When Cracker Barrel Voting Securities Were Acquired
WASHINGTON — San Antonio-based Biglari Holdings Inc. will pay an $850,000 civil penalty to settle charges that it violated premerger reporting and waiting requirements when it acquired Cracker Barrel voting securities, the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Biglari Holdings for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
According to the complaint, Biglari Holdings failed to comply with the antitrust premerger notification requirements of the HSR Act before acquiring voting securities of Cracker Barrel Old Country Store Inc. in June of 2011. Although the HSR Act exempts from its premerger notification requirements certain acquisitions "solely for the purpose of investment," Biglari Holdings’ acquisitions were not made solely for the purpose of investment, the department said. The complaint alleges that Biglari Holdings was in violation of the HSR Act from June 8, 2011 through Sept. 22, 2011.
The Hart-Scott-Rodino Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which was $66 million in 2011 and is currently $68.2 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
Violations Occurred When Cracker Barrel Voting Securities Were Acquired
WASHINGTON — San Antonio-based Biglari Holdings Inc. will pay an $850,000 civil penalty to settle charges that it violated premerger reporting and waiting requirements when it acquired Cracker Barrel voting securities, the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Biglari Holdings for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
According to the complaint, Biglari Holdings failed to comply with the antitrust premerger notification requirements of the HSR Act before acquiring voting securities of Cracker Barrel Old Country Store Inc. in June of 2011. Although the HSR Act exempts from its premerger notification requirements certain acquisitions "solely for the purpose of investment," Biglari Holdings’ acquisitions were not made solely for the purpose of investment, the department said. The complaint alleges that Biglari Holdings was in violation of the HSR Act from June 8, 2011 through Sept. 22, 2011.
The Hart-Scott-Rodino Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which was $66 million in 2011 and is currently $68.2 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
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