Hedge Fund Manager Fined $250,000 for Violating HSR Act

June 11, 2007

On May 21, 2007, the U.S. Department of Justice (the "DOJ") filed a complaint (the "Dondero Complaint") in U.S. District Court for the District of Columbia to obtain civil penalties against James D. Dondero for violating the reporting requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Section 7A of the Clayton Act, 15 U.S.C. § 18(a), as amended (the "HSR Act").  The DOJ concurrently filed a stipulation and proposed final judgment requiring Dondero to pay a $250,000 civil penalty to settle the charges against him.  At the time of the alleged violations, Dondero was the president and manager of Highland Capital Management L.P. ("Highland"), a hedge fund located in Dallas, Texas that specializes in senior bank loans.

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