SAN FRANCISCO—The U.S. Justice Department filed an antitrust lawsuit Thursday (Dec. 18) against Microsemi Corp. over the company's acquisition of Semicoa Inc.
The Justice Department alleges that, through its acquisition of Semicoa assets, Microsemi created a monopoly for small signal transistors that meet the most stringent standards of the Department of Defense and are used in military and space programs deemed essential to U.S. security. As a result of the transaction, prices for these products have increased and likely will continue to increase, according to the allegations.
The Justice Department is seeking a court order requiring Microsemi to sell the Semicoa assets it acquired in July. The Department also intends to seek preliminary relief to preserve the Costa Mesa, Calif.-based Semicoa assets pending a trial, it said.
"The Department brought this lawsuit to restore to customers the benefits of competition in both pricing and responsive and timely delivery of these vital components," said Deborah Garza, acting assistant attorney general in charge of the Justice Department's Antitrust division, in a statement.
Earlier this month, Microsemi (Irvine, Calif.) said it was reviewing the academic credentials of President and CEO James Peterson after allegations arose that Peterson never completed his degree at Brigham Young University.
Microsemi's acquisition of Semicoa assets was not required to be reported under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the Justice Department said. That law requires companies to notify and provide information to the Justice Department and the Federal Trade Commission before consummating certain acquisitions.
The Justice Department alleges that Microsemi violated Section 7 of the Clayton Act, which deals with mergers, and Section 2 of the Sherman Act, which deals with monopolization.
RSS
Digital
RSS| 
Digital| 
Mobile
