WASHINGTON: A federal judge has set ground rules for a dozen states to pursue a legal challenge to the Justice Department’s (DoJ) approval of Hewlett Packard Enterprise’s (HPE) US$14bil acquisition of Juniper Networks amid allegations the deal was politically tainted.
The order issued Wednesday sets the stage for a Colorado-led group of state attorneys general to investigate what led federal antitrust enforcers to reach a settlement with the companies that allows the merger to proceed.
US District Judge Casey Pitts in San Jose, California, ruled last month that the states can seek more information about the controversial settlement – which led to the firing of two DoJ officials who objected to the tactics HPE used to close the acquisition.
But the two sides differ on the scope of the Tunney Act, a 1974 law requiring court approval of DoJ antitrust settlements.
In Wednesday’s order, Pitts wrote that the the states are entitled to at least some of the pretrial information sharing that occurred after the DoJ sued HPE in January to block its purchase of Juniper – the first antitrust case brought by the new Trump administration.
“That record is undoubtedly relevant because it will help the states evaluate the risks to competition posed by the proposed merger, the degree to which the proposed judgment addresses those risks and the strength of the United States’ underlying case,” he wrote.
Pitts directed both sides to submit more briefing and said that if he concludes an evidence hearing is necessary to determine whether the settlement passes muster under the Tunney Act, it will be held March 23 to 27. — Bloomberg
