Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_14-cv-04949/USCOURTS-cand-3_14-cv-04949-2/pdf.json

Nature of Suit Code: 410
Nature of Suit: Antitrust
Cause of Action: 15:1 Antitrust Litigation

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

UNITED STATES OF AMERICA,

Plaintiff, 

v.

FLAKEBOARD AMERICA LIMITED,

CELULOSA ARAUCO Y CONSTITUCIÓN, 

S.A.,

INVERSIONES ANGELINI Y COMPAÑÍA

LIMITADA, 

and

SIERRAPINE,

Defendants. 

Case No. 3:14-cv-04949-VC

FINAL JUDGMENT

WHEREAS, Plaintiff, United States of America, filed its Complaint on November 7, 

2014, alleging that Defendants violated Section 7A of the Clayton Act, 15 U.S.C. § 18a, and that 

Flakeboard America Limited, Celulosa Arauco y Constitución, S.A., and SierraPine violated 

Section 1 of the Sherman Act, 15 U.S.C. § 1, and without this Final Judgment constituting any 

evidence against or admission by any party regarding any issue of fact or law; 

AND WHEREAS, Defendants, without admitting any wrongdoing, agree to be bound by 

the provisions of this Final Judgment pending its approval by the Court;

AND WHEREAS, Defendants have represented to the United States that the actions and 

conduct restrictions required below can and will be made and that Defendants will later raise no 

FINAL JUDGMENT—Page 2 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 1 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

claim of hardship or difficulty as grounds for asking the Court to modify any of the provisions 

contained below; 

 NOW THEREFORE, before any testimony is taken, and without trial or adjudication of 

any issue of fact or law, and upon the consent of the parties, it is ORDERED, ADJUDGED, 

AND DECREED:

I. JURISDICTION 

 This Court has jurisdiction over the subject matter of and each of the parties to this 

action. The Complaint states claims upon which relief may be granted against Flakeboard, 

Arauco, and SierraPine under Section 1 of the Sherman Act, 15 U.S.C. § 1, and against all

Defendants under Section 7A of the Clayton Act, 15 U.S.C. § 18a. 

II. DEFINITIONS

A. “Arauco” means Defendant Celulosa Arauco y Constitución, S.A., a Chilean 

company; its successors and assigns; and its subsidiaries, divisions, groups, affiliates, 

partnerships, and joint ventures, and their directors, officers, managers, agents, and employees. 

B. “Agreement” means any contract, agreement, or understanding, formal or 

informal, written or unwritten. 

C. “Competing Product” means any product that any Defendant offers for sale in the 

United States that is primarily used for the same purpose as any product that any other party to a 

proposed Transaction with any Defendant offers for sale in the United States. 

D. “Defendants” mean Flakeboard America Limited, Celulosa Arauco y 

Constitución, S.A., the Ultimate Parent Entity, and SierraPine.

E. “Flakeboard” means Defendant Flakeboard America Limited, a Delaware 

corporation with its headquarters in Fort Mill, South Carolina; its successors and assigns; and its 

subsidiaries, divisions, groups, affiliates, partnerships, and joint ventures, and their directors, 

officers, managers, agents, and employees. 

FINAL JUDGMENT—Page 3 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 2 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

F. “SierraPine” means Defendant SierraPine, a California limited partnership with its 

headquarters in Roseville, California; its successors and assigns; and its subsidiaries, divisions, 

groups, affiliates, partnerships, and joint ventures, and their directors, officers, managers, agents, 

and employees.

G. “Negotiation and Interim Period” means the period between the commencement 

of negotiations with respect to an offer to enter into a Transaction, and the date when 

negotiations are abandoned or when any resulting Transaction is consummated or abandoned. 

H. “Person” means any individual, partnership, firm, corporation, association, or 

other legal or business entity. 

I. “Production Facility” means any mill, plant, or other asset that manufactures 

products. 

J. “Transaction” means any Agreement to acquire any voting securities, assets, or 

non-corporate interests, form a joint venture, settle litigation, or license intellectual property with 

any person offering a Competing Product. 

K. “Ultimate Parent Entity” means Defendant Inversiones Angelini y Compañía 

Limitada, a holding company with its headquarters in Santiago, Chile, and its successors and 

assigns.

III. APPLICABILITY

 This Final Judgment applies to Flakeboard, Arauco, the Ultimate Parent Entity, and 

SierraPine as defined above, and all other persons in active concert or participation with any of 

them who receive actual notice of this Final Judgment by personal service or otherwise. This 

Court orders the relief in Section IV of this Final Judgment under Section 7A of the Clayton Act, 

15 U.S.C. § 18a. All other relief in this Final Judgment is to remedy the violation of Section 1 of 

the Sherman Act, 15 U.S.C. § 1. 

FINAL JUDGMENT—Page 4 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 3 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

IV. CIVIL PENALTY UNDER SECTION 7A OF THE CLAYTON ACT

 Within 30 days of the entry of this Final Judgment, Flakeboard, Arauco, and the Ultimate 

Parent Entity must pay $1.9 million to the United States, and within 60 days of the entry of this 

Final Judgment, SierraPine must pay $1.9 million to the United States, for a total of $3.8 million. 

V. DISGORGEMENT TO REMEDY THE VIOLATION

OF SECTION 1 OF THE SHERMAN ACT

 Within 30 days of the entry of this Final Judgment, Flakeboard must pay $1.15 million in 

disgorgement to the United States. 

VI. PAYMENT OF CIVIL PENALTY AND DISGORGEMENT

A. The payments specified in this Final Judgment must be made by wire transfer. 

Before making any transfers a Defendant must contact Janie Ingalls of the Antitrust Division’s 

Antitrust Documents Group, at (202) 514-2481, for wire-transfer instructions. 

B. In the event of a default in payment, interest at the rate of 18 percent per annum 

will accrue thereon from the date of default to the date of payment. 

VII. PROHIBITED CONDUCT

A. Flakeboard, Arauco, and SierraPine may not enter into, maintain, or enforce any 

Agreement with an acquiring or to-be-acquired Person that, during the Negotiation and Interim 

Period of a Transaction: 

1. fixes, raises, sets, stabilizes, or otherwise establishes price or output for 

any Competing Product; 

2. moves, migrates, or otherwise allocates customers for any Competing 

Product; 

3. discloses or seeks the disclosure of information about customers, prices, or 

output for any Competing Product, except as such disclosures may be 

permitted in subsection VIII.C or to the extent that such information is 

publicly available at the time disclosure occurs; or

FINAL JUDGMENT—Page 5 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 4 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

4. closes a Production Facility that produces a Competing Product without 

prior written notice to and written approval from the United States.

VIII. PERMITTED CONDUCT

Nothing in this Final Judgment prohibits Defendants from: 

A. entering into an Agreement that a party to a Transaction must continue operating 

in the ordinary course of business; 

B. entering into an Agreement that a party to a Transaction forego conduct that 

would cause a material adverse change in the value of to-be-acquired assets; 

C. before closing or abandoning a Transaction, conducting or participating in 

reasonable and customary due diligence, though no disclosure covered by this section is 

permitted unless (1) the information is reasonably related to a party’s understanding of future 

earnings and prospects; and (2) the disclosure occurs under a non-disclosure agreement that 

(a) limits use of the information to conducting due diligence and (b) prohibits disclosure of the 

information to any employee of the Person receiving the information who is directly responsible 

for the marketing, pricing, or sales of the Competing Products; 

D. disclosing confidential business information related to Competing Products, 

subject to a protective order, in the context of litigation or settlement discussions; or

E. entering into an Agreement where either one of the Defendants and the other party 

to the Transaction are or would be in a buyer/seller relationship and the Agreement would be 

lawful in the absence of the planned acquisition.

IX. ANTITRUST COMPLIANCE PROGRAM

A. Flakeboard and SierraPine must each maintain an antitrust compliance program 

that designates, within 30 days of entry of this order, an Antitrust Compliance Officer with 

responsibility for achieving compliance with this Final Judgment. The Antitrust Compliance 

Officer must, on a continuing basis, supervise the review of current and proposed activities to 

FINAL JUDGMENT—Page 6 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 5 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

ensure compliance with this Final Judgment. The Antitrust Compliance Officer must also do the 

following: 

1. Distribute within 45 days of entry of this Final Judgment, a copy of this 

Final Judgment to each current officer and director, all sales managers and 

supervisors, and each employee, agent, or other person who, in each case, 

has responsibility for or authority over mergers and acquisitions; and for 

Flakeboard’s Antitrust Compliance Officer, a copy of this Final Judgment 

to each current officer and director of Arauco; 

2. distribute in a timely manner a copy of this Final Judgment to any officer, 

director, employee, or agent who succeeds to a position described in 

Section IX.A.1; 

3. obtain within 60 days from the entry of this Final Judgment, and annually 

thereafter, and retain for the duration of this Final Judgment, a written 

certification from each person designated in Sections IX.A.1 & 2 that he 

or she (a) has received, read, understands, and agrees to abide by the terms 

of this Final Judgment; (b) understands that failure to comply with this 

Final Judgment may result in conviction for criminal contempt of court; 

and (c) is not aware of any violation of the Final Judgment; and 

4. provide a copy of this Final Judgment to each potential partner to a merger 

or acquisition before the initial exchange of a letter of intent, definitive 

agreement, or other agreement of merger. 

B. Within 60 days of entry Flakeboard and SierraPine must each certify to Plaintiff 

that it has (1) designated an Antitrust Compliance Officer, specifying his or her name, business 

address, and telephone number; and (2) distributed the Final Judgment in accordance with 

Section IX.A.1.

FINAL JUDGMENT—Page 7 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 6 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

C. For the term of this Final Judgment, on or before its anniversary date, Flakeboard 

and SierraPine must each file with Plaintiff an annual statement as to the fact and manner of its 

compliance with the provisions of Sections VII and IX. 

D. Within 45 days of entry of this Final Judgment, Arauco must distribute a copy of 

this Final Judgment to each current officer and director, sales manager and supervisor, and 

employee, agent, or other person who, in each case, has responsibility for any business in the 

United States.

E. If any director, officer, or Antitrust Compliance Officer of any of the Defendants 

learns of a violation of this Final Judgment, that Defendant must within three business days take 

appropriate action to terminate or modify the activity so as to assure compliance with this Final 

Judgment, and must notify the Plaintiff of the violation within 10 business days.

X. RIGHT TO INSPECTION

A. For the purpose of determining or securing compliance with this Final Judgment, 

any related orders, or determining whether the Final Judgment should be modified or vacated, 

and subject to any legally recognized privilege, authorized representatives of the United States 

Department of Justice, including consultants and other persons retained by the United States, 

shall, upon written request of an authorized representative of the Assistant Attorney General in 

charge of the Antitrust Division, and on reasonable notice to the Defendants, be permitted: 

1. access during Defendants’ office hours to inspect and copy or at Plaintiff’s 

option, to require Defendants to provide hard copy or electronic copies of, 

all books, ledgers, accounts, records, data, and documents in the 

possession, custody, or control of Defendants, relating to any matters 

contained in this Final Judgment; and 

2. to interview, either informally or on the record, Defendants’ officers, 

employees, or agents, who may have their individual counsel present, 

regarding such matters. The interviews are subject to the reasonable 

FINAL JUDGMENT—Page 8 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 7 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

convenience of the interviewee and without restraint or interference by 

Defendants. 

B. Upon written request of an authorized representative of the Assistant Attorney 

General in charge of the Antitrust Division, Defendants must submit written reports or responses 

to written interrogatories, under oath if requested, relating to any of the matters contained in this 

Final Judgment as may be requested. 

C. No information or documents obtained by the means provided in this section may 

be divulged by the Plaintiff to any person other than an authorized representative of the executive 

branch of the United States, except in the course of legal proceedings to which the United States 

is a party (including grand jury proceedings), or for the purpose of securing compliance with this 

Final Judgment, or as otherwise required by law. 

D. If, at the time a Defendant furnishes information or documents to Plaintiff, the 

Defendant represents and identifies in writing the material in any such information or documents 

to which a claim of protection may be asserted under Rule 26(c)(1)(G) of the Federal Rules of 

Civil Procedure, and the Defendant marks each pertinent page of such material, “Subject to claim 

of protection under Rule 26(c)(1)(G) of the Federal Rules of Civil Procedure,” then the United 

States shall give 10 calendar days’ notice before divulging that material in any legal proceeding 

(other than a grand jury proceeding) to which the Defendant is not a party. 

XI. RETENTION OF JURISDICTION

 This Court retains jurisdiction to enable any party to this Final Judgment to apply to this 

Court at any time for further orders and directions as may be necessary or appropriate to carry 

out or construe this Final Judgment, to modify any of its provisions, to enforce compliance, and 

to punish any violations of its provisions. 

FINAL JUDGMENT—Page 9 

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 8 of 9
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

XII. EXPIRATION OF FINAL JUDGMENT

 Unless extended by this Court, this Final Judgment expires ten years from the date of its 

entry.

XIII. COSTS

 Each party must bear its own costs of this action. 

XIV. PUBLIC-INTEREST DETERMINATION

 The parties have complied with the requirements of the Antitrust Procedures and 

Penalties Act, 15 U.S.C. § 16, including making copies available to the public of this Final 

Judgment, the Competitive Impact Statement, and any public comments thereon and Plaintiff’s 

responses to those comments. Based upon the record before the Court, which includes the 

Competitive Impact Statement and any comments and responses to comments filed with the 

Court, entry of this Final Judgment is in the public interest.

Dated: __________________ ______________________________________ 

 UNITED STATES DISTRICT JUDGE

FINAL JUDGMENT—Page 10

Case No. 3:14-cv-04949-VC

Case 3:14-cv-04949-VC Document 31 Filed 02/02/15 Page 9 of 9