More corporate directors have resigned in light of the Department of Justice Antitrust Division’s initiative to stop competitors from sharing corporate leadership. Two directors on the board of Pinterest Inc., provider of an image and information sharing platform, resigned from the board of Nextdoor Holdings Inc., operator of a localized networking platform popular among neighbors and local businesses. Both companies are headquartered in San Francisco and incorporated in Delaware.
- The Department of Justice Antitrust Division said this is part of its campaign against interlocking directorates, a per se violation of Section 8 of the Clayton Act.
- Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division said Section 8 enforcement against “illegal board interlocks” will continue to be a focus for the division “just as Congress intended.”
- This enforcement initiative has led to 15 interlocking director resignations from 11 boards, the DOJ’s Antitrust Division said.
- Five of those resignations were announced in March.