US prosecutors on Tuesday in Colorado federal court began calling witnesses in a novel criminal antitrust prosecution against dialysis provider DaVita, reported Reuters, DaVita was charged last year along with its former chief executive in a conspiracy to suppress competition for senior-level employees.
Federal prosecutors contend former DaVita chief executive Kent Thiry unlawfully schemed to block top employees and managers at the Denver-based company from getting recruited away by competitors through nonsolicitation deals and other restrictions.
A former DaVita official began testifying on Tuesday morning about the company’s no-poach agreements. The government told jurors it would use text messages and emails, and testimony from former DaVita executives, to show unlawful efforts to restrict employee mobility.
Related: DaVita Must Face DOJ’s Criminal Antitrust Charges
“This is a case about a corporate CEO who wanted control over his employees — not just control over how they did their job, but control over what job opportunities they got and how they’re allowed to leave his company,” Justice Department lawyer Megan Lewis said in her opening statement.
The case is being closely watched as a rare antitrust prosecution focused on labor and employment. The Biden administration has vowed to put a greater focus on competition in labor markets. Prosecutors last year in Connecticut filed criminal charges alleging a similar no-poach conspiracy for aerospace engineers.
The indictment alleges that DaVita participated in separate conspiracies to suppress competition for the services of certain employees, a move that may have contributed to rising costs that were ultimately passed down to consumers or taxpayers.
The federal judge in the DaVita case, R. Brooke Jackson, told jurors on Monday the case is “a big deal” and said “what you folks do with it is going to be heard in other places.”
DaVita faces potential penalties of up to $300 million if found guilty on three counts, according to DOJ records.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI