Legends Hospitality to Pay $3.5 Million and Appoint Compliance Officer to Settle DOJ Allegations

Legends Hospitality Parent Holdings, co-founded by Dallas Cowboys owner Jerry Jones and the late New York Yankees owner George Steinbrenner, has agreed to pay $3.5 million and appoint an antitrust compliance officer to settle allegations by the Department of Justice (DOJ) that it engaged in illegal pre-merger activity. In November, Legends announced its acquisition of ASM Global, a venue management and services company.

The DOJ alleged that Legends took control of some aspects of ASM's operations and became involved with venue management for a California arena before the required legal waiting period, violating the Hart-Scott-Rodino Act (HSRA). HSRA prohibits companies from combining operations or other business aspects before the expiration of the waiting period, according to a DOJ press release on Monday.

As part of the proposed final judgment, Legends must appoint an antitrust compliance officer with at least five years’ experience in legal and antitrust matters. The DOJ must be notified within 45 days of any vacancy in this role, but the appointment of reserve antitrust compliance officers is allowed. Additionally, the company must create an antitrust compliance program, implement annual antitrust compliance training, and provide regular compliance reports to the DOJ.

A spokesperson for Legends stated in an emailed message, “We are pleased this matter is resolved. Moving forward, we are focused on continuing to serve our clients, and we look forward to closing our deal with ASM Global this month.”

By fLEXI tEAM