New York Attorney General Letitia James has joined 17 other state attorneys general in challenging a recent settlement by the U.S. Department of Justice (DOJ) that would permit Hewlett Packard Enterprise (HPE) to merge with Juniper Networks, a major competitor. The coalition sent a letter to the DOJ expressing concerns that the settlement does not address potential higher costs and reduced competition for consumers.
The letter alleges that the DOJ’s approval of the merger followed improper influence from HPE, including relationships between HPE consultants and top DOJ officials. According to the coalition, staff and senior leaders in the DOJ’s Antitrust Division opposed the merger but were overruled by officials with personal connections to lobbyists hired by HPE. The attorneys general argue this conduct may violate federal laws designed to prevent undue influence in merger settlements.
“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.”
Reports cited by the coalition describe an irregular process leading up to the settlement. These include allegations that DOJ Chief of Staff Chad Mizelle and Acting Associate Attorney General Stanley Woodward were lobbied by individuals with ties to both HPE and the Trump administration, as well as claims of undisclosed side agreements made outside of official documentation. It is further alleged that Mizelle overruled opposition from Antitrust Division leadership before approving a settlement that did not address antitrust concerns previously identified by DOJ.
Two senior attorneys in the Antitrust Division who opposed the deal were reportedly dismissed. One of them, former Principal Deputy Assistant Attorney General Roger Alford, publicly criticized the agreement, calling it a “scandal” and describing it as prioritizing lobbying interests over legal standards.
The coalition’s letter states that if these allegations are accurate, high-level DOJ appointees breached public trust and violated provisions of the Tunney Act—a law enacted after Watergate requiring judicial review of antitrust settlements for public interest considerations.
Attorney General James and her counterparts are asking a judge in California’s Northern District Court to hold hearings on these allegations and block approval of the settlement if wrongdoing is found. Attorneys general from Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin joined in this request.
