In its first criminal no-poach prosecution to result in a penalty against an individual, the US Department of Justice has entered into a pretrial diversion agreement that requires the defendant to complete 180 hours of community service, refrain from any criminal activity or unlawful drug use, and surrender his passport for six months. In exchange, the defendant will not be incarcerated or face further penalties in connection with the underlying no-poach charges. While the penalties are not severe, they constitute the first time that penalties have been assessed against an individual defendant and have important implications for corporate officers, directors, managers, and HR professionals.
On 6 December 2022, the US Department of Justice announced the unsealing of an 11-count indictment filed in the US District Court for the Southern District of Texas charging 12 individuals from Texas and Mexico in a violent conspiracy to monopolize the transmigrante industry in Texas.
In the wake of US Supreme Court precedent in the 2021 AMG Capital Management LLC v. Federal Trade Commission decision, the FTC is doubling down and expanding its enforcement efforts to target executives, directors and owners, including private equity, in an effort to hold accountable anyone profiting from anti-competitive conduct or conduct harmful to consumers. William Roppolo, Ashley Eickhof and Annasofia Roig explores this issue in an article published in Law360.
On 10 November 2022, following a 3-1 vote, the Federal Trade Commission issued a policy statement expanding its interpretation of the scope of unfair methods of competition under section 5 of the Federal Trade Commission Act. Section 5 of the FTC Act prohibits “unfair methods of competition,” which covers conduct that violates antitrust laws or section 5 itself.