Three Directors Resign from Sevita Board of Directors in Response to the FTC’s Ongoing Enforcement Efforts Against Interlocking Directorates

The Federal Trade Commission announced today that three individuals have resigned from their positions on the Board of Directors of Sevita Health (Sevita) in response to the Federal Trade Commission’s enforcement of the Clayton Act, which generally prohibits directors and officers from serving simultaneously on the boards of competitors.

“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 that the firms involved in this case worked with the FTC to resolve this issue quickly. We encourage all firms to review their board memberships to avoid any overlaps with competitors—including when new board members are added as a result of investments by private equity firms or other new shareholders.”

Sevita and Beacon Specialized Living Services, Inc. (Beacon) both provide services, including residential facilities, to individuals with intellectual and developmental disabilities. Despite this, they had common representation on each firm’s board of directors. The resignations made in response to the FTC’s enforcement efforts have now resolved the competition concerns raised by the three individuals serving as directors for both Sevita and Beacon simultaneously.