Dondero, James D. c/o Highland Capital Management, LP, United States of America (for the FTC)

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United States of America, Plaintiff, v. James D. Dondero, c/o Highland Capital Management, L.P., Defendant. United States District Court for the District of Columbia
FTC Matter/File Number:

0510184

Enforcement Type:

Civil Penalty (7a)

Case Summary

In 2007, the Commission requested that the Department of Justice file a complaint seeking civil penalties against James D. Dondero for violating the filing requirements of the Hart-Scott-Rodino Pre-Merger Notification Act. A stipulation and proposed final judgment was also filed requiring Dondero, parent of Highland Capital Management, L.P., a hedge fund, to pay $250,000 to settle the charges. According to the Commission, Highland failed to file the appropriate premerger documents in 2003 when it acquired shares of Neighborcare, Inc, then known as Genesis Health Ventures, bringing its holdings above the $50 million filing threshold. Upon realizing the error, a corrective filing was made, and Highland outlined steps to avoid future violations. However, in 2005, Highland reported another such violation involving shares of Motient Corporation.