NEW YORK MERCHANT BANKING FUND TO PAY $2,785,OOO
FOR VIOLATING ANTITRUST PREMERGER NOTIFICATION REQUIREMENTS
WASHINGTON, D.C.-- A New York merchant banking fund and one of its
general partners has agreed to pay $2,785,000 to settle charges that
the company failed to produce a key document for federal antitrust authorities
before undertaking an acquisition subject to premerger review, the Department
of Justice announced today.
The Department of Justice's Antitrust Division, at the request of the
Federal Trade Commission, filed a civil lawsuit today in U.S. District
Court in Washington, D.C. against Blackstone Capital Partners II Merchant
Banking Fund L.P., for violating the Hart-Scott-Rodino 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, Blackstone violated premerger notification
requirements when it acquired more than $15 million in voting securities
from Prime Succession Inc., an Indiana-based owner and operator of funeral
homes and cemeteries. The civil penalty that Blackstone has agreed to
pay is the maximum allowed by law.
The complaint also alleges that Howard Lipson, a Blackstone executive,
certified that Blackstone's premerger filing was "to the best of
[his] knowledge, true, correct, and complete" when he knew or should
have known that it was not. Mr. Lipson has agreed to pay a $50,000 civil
The Hart-Scott-Rodino Act of 1976 imposes notification and waiting period
requirements on individuals and companies over a certain size before
they can consummate acquisitions of stock or assets over a certain value
or ownership percentage.