Wednesday, August 16, 2023

Two Pinterest Directors Resign from Nextdoor Board of Directors in Response to Justice Department’s Ongoing Enforcement Efforts Against Interlocking Directorates

 

Antitrust Division Continues to Focus on Competitors Sharing Company Directors in Violation of Section 8 of the Clayton Act 

The Justice Department announced that two directors of Pinterest Inc. (Pinterest) have resigned their positions on the Board of Directors of Nextdoor Holdings Inc. (Nextdoor) in response to the Antitrust Division’s ongoing enforcement efforts around Section 8 of the Clayton Act. The division's enforcement initiative has led to fifteen interlocking director resignations from eleven boards.

“We remain steadfast in our commitment to protect competition by preventing interlocking directorates that we believe violate Section 8 of the Clayton Act,” said Deputy Assistant Attorney General Andrew Forman of the Justice Department’s Antitrust Division. “Enforcement involving interlocking directorates will continue to be one of the top priorities of the Antitrust Division.”

Section 8, which Congress made a per se violation of the antitrust laws, prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. In response to the division’s Section 8 enforcement efforts, two directors who served on the boards of both Nextdoor and Pinterest resigned from the board of Nextdoor effective Aug. 1, without the directors or either company admitting liability.

Nextdoor is a Delaware corporation headquartered in San Francisco. It is a large social network that connects users, businesses and other neighborhood stakeholders. 

Pinterest is a Delaware corporation headquartered in San Francisco. It is a leading social network and image sharing service. 

Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov

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