Attorney General Anne Lopez of Hawaii has joined a coalition of state attorneys general seeking to intervene in the court review of a $14 billion merger settlement between Hewlett Packard Enterprises (HPE) and Juniper Networks. The coalition alleges that the settlement was influenced by powerful lobbyists and not based solely on antitrust considerations.
The coalition is asking the court to use its authority under the federal Tunney Act, a law passed in 1974 to ensure that antitrust settlements are not swayed by undue influence, to order an evidentiary hearing. This would allow the states to participate as parties in the review process.
“To protect the public interest, critical judicial review is warranted in light of the circumstances surrounding the abrupt change in the enforcement stance of the U.S. Department of Justice,” said Attorney General Lopez.
Attorney General Lopez and other state attorneys general had previously sent a letter to the Justice Department, raising concerns about the settlement after reports suggested it was shaped by improper influence rather than legitimate antitrust concerns. They also argue that the remedies included in the settlement do not address the anticompetitive harms cited by the Justice Department when it initially sought to block the merger.
The coalition is now formally requesting to intervene in the case, stating that states have a strong interest in ensuring that antitrust settlements serve the public and prevent unlawful mergers from negatively affecting citizens. According to the coalition, without their intervention, only parties supporting the settlement would be heard, resulting in a one-sided argument. If granted, intervention would allow the states to review and potentially challenge the merger in court.
Attorney General Lopez is joined by attorneys general from California, Colorado, Connecticut, the District of Columbia, Illinois, Massachusetts, Minnesota, North Carolina, New York, Oregon, Washington, and Wisconsin in filing this motion.
