WASHINGTON, D.C. — The Federal Trade Commission (FTC) has revealed that three members of the board have stepped down from Sevita Health due to an ongoing enforcement initiative aimed at interlocking directorates, which could breach Section 8 of the Clayton Act.
These resignations were undertaken to address competition issues highlighted by the simultaneous board memberships of these individuals at both Sevita Health and Beacon Specialized Living Services, Inc. Both organizations function within the same sector—offering residential services for individuals with intellectual and developmental disabilities.
“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 the firms involved acted quickly to resolve the issue.”
The action is a component of the FTC’s wider initiative aimed at stopping competitors from having shared board members, as this can diminish competition incentives and possibly disadvantage consumers. Additionally, the agency has encouraged companies, especially those backed by private equity investors, to take the initiative in examining board memberships to guarantee adherence to antitrust regulations.
