New York Attorney General Letitia James has joined a coalition of 17 other state attorneys general in challenging a recent settlement between the United States Department of Justice (DOJ) and Hewlett Packard Enterprise (HPE). The settlement would permit HPE to merge with Juniper Networks, one of its top competitors, without measures to address potential increased costs and reduced competition.
In a letter addressed to the DOJ, Attorney General James and her counterparts expressed concerns that the approval process for the merger may have been influenced by improper relationships. According to the coalition, reporting and statements from former DOJ senior staff suggest that top DOJ officials overruled their own Antitrust Division’s objections due to personal connections with consultants and lobbyists hired by HPE. The attorneys general argue this conduct may violate federal laws designed to prevent undue influence in merger settlements. They are asking a judge in the Northern District of California to hold hearings on these allegations and block the settlement if corruption is proven.
“Big corporations cannot use their money and power to make backroom deals that let them evade the law,” said Attorney General James. “HPE allegedly used its connections to Trump administration officials to get permission to buy a top competitor. This is not only illegal, but it will also hurt consumers by leaving them with higher prices and fewer alternatives. The court should investigate this corruption and take action to block the settlement.”
The coalition’s letter references reports indicating an unusual approval process involving high-level DOJ officials Chad Mizelle and Stanley Woodward, who were reportedly lobbied by individuals with close ties to the Trump administration employed by HPE. One account described meetings between HPE’s representatives and DOJ officials at a private Washington, DC club, where secret side agreements were allegedly made outside of the final settlement terms. Mizelle is reported to have overruled opposition from Antitrust Division leadership before approving a settlement that did not address previously identified antitrust harms.
Two senior attorneys in the Antitrust Division who opposed the deal were dismissed from their positions. Roger Alford, one of those fired, publicly criticized the agreement as representing “the Rule of Lobbyists” instead of “the Rule of Law.” According to earlier findings from DOJ’s lawsuit opposing the merger, a combination between HPE and Juniper could increase consumer costs by up to 14 percent.
Attorney General James and her colleagues contend that if lobbying pressure or undisclosed arrangements occurred as alleged, then political appointees at DOJ broke public trust and violated provisions under the Tunney Act—a post-Watergate law passed in 1974 requiring judicial review of antitrust settlements for public interest rather than corporate influence.
The group urges federal court hearings into possible misconduct related to this case. Alongside New York, attorneys general from Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, North Carolina, Oregon, Rhode Island, Washington State, and Wisconsin are participating in this effort.
