Several directors of SolarWinds and DynaTrace have resigned after being contacted by the US Department of Justice about a possible antitrust violation of Section 8 of the Clayton Act.
The Department of Justice announced that tech firms SolarWinds, DynaTrace, Skillsoft, and Udemy may have violated Section 8 of the Clayton Act, which prohibits individuals from serving as a director or officer of two competing corporations. A director serving competing corporations poses the threat of leaking sensitive information about one company to the other.
Following the announcement, several of SolarWinds’ and DynaTrace’s directors resigned. The SolarWinds directors in question are Seth Boro, Michael Hoffmann and James Lines. The resignees of DynaTrace are unknown. Moreover, investment firm Thoma Bravo faces an issue, as two directors from SolarWinds were represented on its board.
“Competitors sharing officers or directors’ further concentrates power and creates the opportunity to exchange competitively sensitive information and facilitate coordination – all to the detriment of the economy and the American public”, said assistant attorney general Jonathan Kanter of the Justice Department’s Antitrust Division. “The Division is undertaking an extensive review of interlocking directorates across the entire economy and will enforce the law.”
DoJ taps companies
The US Department of Justice ensures the adequate implementation of laws that secure strategic data and sensitive information. The department found several other companies with overlapping directors, who have now resigned. They include:
- Maxar Technologies and Redwire. Both firms provide space infrastructure, communication products and services.
- Littelfuse and CTS. Builders of high-tech tools used in passenger and commercial vehicles. They provide advanced tools for effective transportation, including sensors and switches.
- Definitive Healthcare and ZoomInfo Technologies. Both companies provide strategic market information and intelligence platforms. This data is used by third-party sales, marketing, and recruitment operations.