KKR Agrees To $250 Mn Settlement With US DOJ In Merger Filing Case

KKR & Co. has agreed to pay $250 million to settle a US Department of Justice (DOJ) lawsuit alleging that the private equity firm failed to provide documents required for federal scrutiny of more than a dozen acquisitions, according to a federal court filing reported by Bloomberg.

The settlement marks the largest-ever penalty imposed for violations of US merger filing requirements. It covers KKR entities involved in transactions filed before 2025.

The DOJ had sued KKR in the final week of the Biden administration, alleging that the firm failed to comply with disclosure requirements under the Hart-Scott-Rodino Act in at least 16 transactions.

The deals had a combined value of more than $24.7 billion when they were announced, as per the BBG report.

The department had sought $650 million in civil penalties. KKR had previously pursued the dismissal of the case and separately sued the DOJ, arguing that it had not breached the law. Judges overseeing the cases had not ruled on either matter, the report said.

KKR and the DOJ had also discussed a settlement of about $250 million before the 2024 US presidential election, but the agreement was not finalised at the time.

KKR Disputes DOJ Characterisation

KKR said the settlement resolves both the civil allegations and a separate criminal investigation into whether employees knowingly withheld information from merger filings.

The investment firm said it disagreed with the DOJ's description of its earlier filings and maintained that it had acted in good faith and in line with industry practice, as per BBG.

According to the report, KKR spokesperson Kristi Huller said the firm "determined that ongoing litigation would be a significant distraction for our organisation, and we are pleased to put this behind us."

The penalty "will have no financial impact on the firm, our funds, or any of our investors and will be fully reimbursed by outside law firms," she added.

Record Antitrust Filing Penalty

Associate Attorney General Stanley E Woodward said the settlement "sends a powerful message: the Department is committed to vigorous enforcement," adding, "Companies that disregard their legal obligations will face serious consequences," as per the BBG report.

The $250 million payment is more than 20 times the previous record settlement for merger filing violations.

Edwards Lifesciences paid $12 million in July over its failure to notify US authorities about a proposed acquisition, the report said.

Under US law, most transactions valued above $134 million must be reported to the DOJ and Federal Trade Commission before completion.

Companies can face penalties exceeding $50,000 a day for filing violations, while submissions must include relevant studies, analyses and reports prepared for senior executives or boards.