WASHINGTON (CHATNEWSTV) — The U.S. Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), has filed a civil lawsuit against crude-oil producers XCL Resources Holdings LLC, Verdun Oil Company II LLC, and EP Energy LLC for violating pre-transaction notification requirements under the Hart-Scott-Rodino (HSR) Act.
The lawsuit, filed in the U.S. District Court for the District of Columbia on Tuesday, alleges that the companies bypassed the mandatory waiting period following a $1.4 billion transaction in 2021 between Verdun and EP. The agreement occurred while Verdun was under common management with XCL.
The complaint outlines that, instead of adhering to the waiting period intended to allow federal agencies to review potential mergers, EP allowed Verdun and XCL to take operational control over key aspects of EP’s business. This included halting EP’s well-drilling and development activities at a time when the U.S. crude oil market faced supply shortages and gasoline prices were soaring.
As part of a proposed settlement, the companies have agreed to pay a record civil penalty of $5.6 million to resolve the lawsuit, marking the largest fine ever imposed for illegal pre-merger coordination under the HSR Act.
The settlement is subject to approval by the U.S. District Court, with a 60-day comment period open for public feedback.
