Matthew Fox, Partner in Benesch’s Litigation Practice Group, was recently quoted in the National Law Journal article “DOJ Awards $1M Antitrust Whistleblower Reward in Alleged M&A Criminal Matter.”
The article covers the DOJ’s first-ever antitrust whistleblower reward, granting $1 million to an individual whose tip led to a deferred prosecution agreement with EBlock Corp. The company agreed to pay a $3.28 million criminal fine related to alleged bid-rigging in online used-vehicle auctions, highlighting the DOJ’s increased scrutiny of antitrust risks in M&A transactions.
Matthew emphasized the importance of thorough due diligence in mergers and acquisitions, particularly regarding ongoing or potential criminal issues. He cautioned that active litigation and threats of litigation should always be disclosed during due diligence to ensure companies are not unknowingly acquiring criminal exposure. In light of the DOJ’s new whistleblower rewards program, Fox advised that companies must be even more diligent about understanding what they are purchasing in an acquisition—summarizing the approach as “trust but verify.”
Read the full article here.