Attorney General Bonta Seeks to Intervene in Allegedly Corrupt U.S. DOJ HPE/Juniper Merger Settlement

Opposes alleged attempt by the Trump Administration to reward friends, amid the stark political prosecution of percieved enemies           

OAKLAND — California Attorney General Rob Bonta joined a coalition of 13 attorneys general in seeking to intervene in the $14 billion Hewitt Packard Enterprises (HPE)/Juniper Networks merger while the merits of the settlement are evaluated by a judge. Before their merger, HPE and Juniper were rival networking equipment manufacturers. Last month, Attorney General Bonta opposed the U.S. Justice Department’s (U.S. DOJ) abrupt settlement of this merger amid allegations of backroom dealings and asked the judge overseeing the case to hold a hearing to determine if the merger is in the public interest. After reaching the settlement with U.S. DOJ, HPE and Juniper started the integration process — and in the filing today with the U.S. District Court for the Northern District of California, Attorney General Bonta asks to be allowed to participate directly in the investigative proceedings, which will allow California and other states to take further action to stop that merger integration process while the court evaluates the merits of the settlement.  

“Allegations that the Trump Administration approved a $14 billion merger because of backroom deals with their buddy lobbyists are extremely alarming. Regulators from across the political spectrum have argued that the Trump Administration’s approval of the HPE/Juniper merger is inadequate and potentially the result of backroom deals. As policymakers and leaders, we must wield the power of our offices for the good of the people — not to line the pockets of friends or prosecute people we do not agree with,” said Attorney General Bonta. “Today, we take action and ask the court to allow California and other states to participate in the court’s investigation of the HPE/Juniper merger settlement as it determines if the approval is in the best interest of the American people. My office is fully prepared to engage in the investigation — it is our duty to ensure the Trump Administration is using their power lawfully.” 

Under the law, U.S. DOJ must seek approval of all antitrust settlements from the courts, and the courts must make independent judgments that a settlement is in the public interest. The attorneys general argue that publicly available information about the process that led to the HPE/Juniper settlement suggests that U.S. DOJ has failed to meet that standard in this case.  

The attorneys general argue that the multistate coalition should be allowed to intervene in the matter and protect their citizens from violations of the antitrust laws, including seeking records related to the U.S. DOJ’s settlement and the process that led to it, holding hearings in open court, and obtaining a pause in integration of the merging parties pending the outcome of those proceedings. Without the states’ intervention, the only participants in the investigation into the settlement will be those who support the settlement, and the court would hear a one-sided argument. 

The Tunney Act is a post-Watergate scandal law enacted by Congress in 1974 to ensure that antitrust settlements reached by the U.S. DOJ are based on the merits rather than undue influence by powerful corporations and their well-connected lobbyists. Because states have a right to enforce federal and state antitrust law, including the Clayton Act, California has a right to participate in the Tunney Act process.

BACKGROUND

According to public reports, U.S. DOJ trial staff working on the merger case, as well as senior leadership in the Antitrust Division, opposed the HPE/Juniper settlement. But higher-level political appointees at the department were lobbied by individuals with close ties to the Trump Administration. The Chief of Staff to the U.S. Attorney General then allegedly pushed the settlement through over the objections of the Antitrust Division and in a manner that did not address the anticompetitive harms alleged in the government’s complaint. Two senior Antitrust Division attorneys appointed by the Trump Administration were allegedly fired for opposing the settlement. 

The allegation that the Trump Administration approved the HPE/Juniper merger — after it had initially sued to stop it — for the benefit of their friends is concerning, especially amid a climate where the Administration appears to be using its power to reward their friends and persecute people it views as enemies. Earlier this year, Attorney General Bonta issued a statement amid concerns that the Trump Administration or people associated with the Administration engaged in insider trading or other illegal financial transactions, informed by advanced knowledge of non-public information regarding the President’s changes of tariff policy. On April 9, President Trump's decision to ease most tariffs caused the financial markets to predictably skyrocket after crashing and undergoing wild fluctuations since early April, when global tariffs were announced. 

As California's top lawyer and law enforcement official, Attorney General Bonta has continued to defend against the Trump Administration’s campaign of political retribution and suppression of speech.

Following the indictment of New York Attorney General Letitia James, Attorney General Bonta demanded that U.S. Attorney General Pam Bondi reassert U.S. DOJ's  long-standing independence and immediately end all politically-motivated criminal prosecutions. Last month, Attorney General Bonta also sent a letter to U.S. Attorney General Pam Bondi expressing grave concern with the alarming trend of U.S. DOJ wielding its prosecutorial power for the improper purpose of political retribution following the apparently politically-influenced indictment of former FBI Director James Comey. Attorney General Bonta also called on Federal Communications Chairman Brendan Carr to stop his campaign of censorship after his intimidation of television broadcasters led to Jimmy Kimmel’s late-night talk show being pulled off the air. 

Earlier this year, Attorney General Bonta, along with 20 other state attorneys general, issued an open letter urging the legal community to stand together in defense of the rule of law in response to President Trump’s calls for the impeachment of federal judges and threats of retribution against law firms. He has stood with WilmerHale, Jenner & Block, Susman Godfrey, and Perkins Coie in amicus briefs in support of their lawsuits challenging the Trump Administration’s retaliatory executive orders targeting law firms that represent clients or positions it disagrees with. And he issued a separate statement on the need to speak up and push back when our democratic norms are violated, our legal system is undermined, and our laws are broken.  

In filing the motion for intervention, Attorney General Bonta joins the attorneys general of Colorado, Connecticut, Hawai'i, Illinois, Massachusetts, Minnesota, North Carolina, New York, Oregon, Washington, Wisconsin, and the District of Columbia.  

A copy of the filing can be found here.