The Federal Trade Commission will consider seeking disgorgement of “ill-gotten gains” even in cases involving closed mergers, said Deborah Feinstein, director of the FTC’s Bureau of Competition, during a recent speech in New York regarding the agency’s approach toward merger review. Given the FTC’s more frequent use of the disgorgement remedies in recent years, this is a potentially important acknowledgement and one that the business community should watch closely.
Relevant FTC Guidance Regarding Disgorgement
Section 13(b) of the FTC Act states that “in proper cases, the commission may seek, and after proper proof, the court may issue, a permanent injunction.” Though this text does not expressly authorize monetary remedies, courts have held that equitable monetary remedies may be awarded as part of the courts’ equitable jurisdiction, which is not restricted by the FTC Act. This interpretation was reaffirmed earlier this year in a decision by U.S. District Judge Mitchell S. Goldberg of the Eastern District of Pennsylvania.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
