Skip to Main Content


Interlocking Directorates - Not Just a Section 8 Issue

October 6, 2017 - Law360
Social Logo Social Logo Social Logo

By Pat Pascarella and Nate Newman

We regularly receive queries from clients regarding the legality of director interlocks under Section 8 of the Clayton Act. Section 8, of course, prohibits certain types of interlocking directorates between competitors with the goal of preventing anti-competitive coordination between the two interlocking companies. But a different and perhaps equally important question clients should consider is the potential risk created by interlocking directors under Section 1 of the Sherman Act or Section 5 of the Federal Trade Commission Act. A company’s ability to defend an interlock under Section 8 does not necessarily mean that the activities Section 8 was intended to forestall may not still occur — or appear to have occurred — and that may open the door for Sherman or FTC Act claims.

Read the article here.

lingua negoti
The language of business.
Perspectives on employee benefits, executive compensation and ERISA litigation to help you attract and retain talent.
Ohio Environmental
Insights and commentary for the business and legal community.