#384: 08-13-96 - San Diego Fast Food Franchisor will Pay $1.45 Million Penalty
FOR IMMEDIATE RELEASE AT
TUESDAY, AUGUST 13, 1996 (202) 616-2771
TDD (202) 514-1888
SAN DIEGO FAST FOOD FRANCHISOR WILL PAY $1.45 MILLION CIVIL
PENALTY FOR VIOLATING ANTITRUST PREMERGER REPORTING REQUIREMENTS
WASHINGTON, D.C. -- A San Diego fast food franchisor that owns
Jack in the Box restaurants will pay a $1.45 million civil penalty to
settle charges that it violated premerger reporting requirements, said
the Department of Justice.
The Department's Antitrust Division today filed a civil suit against
Foodmaker Inc. for acquiring all of the voting securities of Consul Restaurant
Corporation without notifying federal antitrust authorities of the acquisition.
Consul, which had operated 26 franchised Chi-Chi's restaurants, was acquired
by Chi-Chi's Inc., which was a subsidiary of Foodmaker at the time.
The suit and a proposed settlement were filed in U.S. District
Court in Washington, D.C., at the request of the Federal Trade Commission.
The settlement, which must be approved by the court, would settle the suit.
The Hart-Scott-Rodino Act of 1976 imposes notification and waiting
period requirements on individuals and companies over a certain size before
they consummate acquisitions of stock or assets over a certain value or
ownership percentage.
###