Three directors have stepped down from the board of Sevita Health following enforcement actions by the Federal Trade Commission (FTC) regarding violations of the Clayton Act. The law prohibits individuals from serving on the boards of competing companies, a practice known as interlocking directorates.
“We are committed to enforcing the Clayton Act’s prohibition on interlocking directorates, which risk suppressing competition,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “We are pleased that the firms involved in this case worked with the FTC to resolve this issue quickly. We encourage all firms to review their board memberships to avoid any overlaps with competitors—including when new board members are added as a result of investments by private equity firms or other new shareholders.”
Sevita Health and Beacon Specialized Living Services, Inc. both operate residential facilities and provide services for people with intellectual and developmental disabilities. The FTC identified that some individuals served simultaneously on both companies’ boards, raising concerns about reduced competition in this sector. After discussions with the FTC, these individuals resigned their positions, addressing regulatory concerns about overlapping directorships.
The FTC stated it continues its mission to promote competition and protect consumers. It also reminded consumers that it does not solicit money or make threats related to its enforcement activities. Additional information about consumer protection and competition can be found through official FTC channels online.
