US Department of Justice indicted Surgical Care Affiliates LLC and its related entity (collectively SCA) for labour market collusion. Federal grand jury returned a two-count indictment charging SCA, which own and operate outpatient medical care centres across the country, for agreeing with competitors not to solicit senior-level employees which is the first charges of Antitrust Division’s in this ongoing investigation into employee allocation agreements.
The indictment, filed in the U.S. District Court for the Northern District of Texas, Dallas Division, charges SCA with entering into and engaging in two separate bilateral conspiracies with other health care companies to suppress competition between them for the services of senior-level employees, in violation of the Sherman Act. First, beginning at least as early as May 2010 and continuing until at least as late as October 2017, SCA conspired with a company based in Texas to allocate senior-level employees by agreeing not to solicit each other’s, senior-level employees. Moreover, SCA separately conspired with a company based in Colorado to allocate senior-level employees through a similar non-solicitation agreement starting at least as early as February 2012 and continuing until at least as late as July 2017.
This indictment only alleged that crimes have been committed. If violation of the Sherman Act is decided then this means that maximum penalty of a $100 million fine will be given to corporations. Furthermore, the fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
(DOJ,07.01.2021)
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