Sunshine Act Meetings, 85310-85311 [2023-26967]
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Federal Register / Vol. 88, No. 234 / Thursday, December 7, 2023 / Notices
preceding the date of these breaches.
The Commission also considered the
following aggravating factors: (1) the law
firm’s use of the CBI and its provision
to an associate were not inadvertent; (2)
unauthorized individuals had access to
and presumably viewed the CBI; (3) the
law firm violated the APO in three
different ways; (4) the law firm did not
discover the public exposure of the CBI;
and (5) the law firm failed to follow its
own procedures by accessing and using
CBI to which the firm had restricted
access pending the completion of the
cross-use agreement.
The Commission also considered the
law firm’s argument that its use of the
exhibit and its provision of CBI to the
associate attorney was consistent with
28 U.S.C. 1659(b), which provides for
the transfer and admissibility of the
Commission record in federal district
court litigation under certain
circumstances. However, the
Commission determined that the exhibit
at issue was not a part of the
Commission record, as defined under 19
CFR 210.38(a), and thus, it was not
within the scope of section 1659(b). In
addition, the Commission noted that the
application of section 1659(b) would not
mitigate the public exposure of the CBI.
The Commission determined to issue
private letters of reprimand to the
partner who served as lead counsel and
to the senior counsel. The Commission
determined that they were both part of
the decisions to use the CBI in the filing,
to provide it to the associate attorney,
and to delegate the removal of the
exhibit to the associate, who did not
have any previous experience with
section 337 investigations and
Commission APO practice. The
Commission determined to issue a
warning letter to the second partner,
who worked on the filing and was aware
of the associate’s access to the CBI, but
was not involved with the finalization
of the document or the failed process to
remove the confidential exhibit.
The Commission found that good
cause existed to issue a warning letter
to the associate under 19 CFR 201.15(a).
The associate was not a signatory to the
APO in the underlying section 337
investigation and did not have previous
Commission APO experience, and thus
the Commission determined that the
issuance of a sanction would be
inappropriate. However, the associate
had several years of experience as an
attorney, was aware that the exhibit was
confidential, and had received specific
instructions to remove the confidential
exhibit from the filing. The associate
was also directly responsible for the
public exposure of CBI.
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Case 8. The Commission determined
that an attorney at a law firm breached
the APO issued in a section 337
investigation when the law firm
publicly filed in EDIS and served to its
clients a confidential document that the
attorney had prepared.
Although the document contained
unredacted CBI, the attorney did not
place confidential headers on the
document when he was preparing it to
be filed. As a result, after the attorney
finalized the document, a paralegal filed
the document publicly on EDIS, and the
law firm’s client, who was not on the
APO, was provided with a copy of the
document. After the document was
posted to EDIS, opposing counsel
notified the attorney that the document
contained CBI, and the paralegal, at the
attorney’s direction, contacted the
Office of the Secretary to request that
the document be removed from public
view. In addition, the attorney contacted
the client who had received the
document and requested that the client
destroy it. The attorney refiled the
document as confidential, but multiple
unauthorized individuals had accessed
the document while it was available
publicly on EDIS.
In determining whether to issue a
sanction for the breach, the Commission
considered the following mitigating
factors: (1) the breach was unintentional
and inadvertent; (2) the attorney selfreported the breach to the Commission;
(3) after being notified of the breach, the
attorney took prompt action to remedy
the breach and prevent further
dissemination of CBI; and (4) the
attorney had not previously breached an
APO in the two-year period preceding
the date of this breach. The Commission
also considered the following
aggravating factors: (1) the attorney did
not discover the breach; and (2)
unauthorized individuals had access to
and presumably viewed the CBI.
The Commission determined to issue
a private letter of reprimand to the
attorney. The Commission determined
not to hold the paralegal who filed the
document or any other individuals at
the law firm responsible for the breach.
The attorney was the only person
involved in the preparation of the
document for filing, and the breach
occurred because the attorney failed to
apply CBI headers.
Case 9. The Commission determined
that an attorney breached the APO in a
section 337 investigation by
transmitting to unauthorized
individuals a link to a document that
contained unredacted CBI obtained
under the APO.
The attorney discovered the breach
eight days after sending the link when
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he received a question from one of the
unauthorized recipients who had gained
unauthorized access. Upon learning of
the breach, the attorney immediately
deactivated the link and confirmed that
unauthorized recipients had destroyed
the document and would refrain from
using any CBI that they may have
viewed. The attorney also immediately
reported the breach to the opposing
counsel and, two days later, reported
the breach to the Commission.
In determining whether to issue a
sanction for the breach, the Commission
considered mitigating factors, including
that: (1) the breach was inadvertent and
unintentional; (2) the law firm
discovered its own breach; (3) the law
firm promptly self-reported the breach;
(4) after discovering the breach, the law
firm took prompt action to remedy the
breach and prevent further
dissemination of CBI; (5) the law firm
implemented new procedures to prevent
against similar breaches in the future;
and (6) the attorney had not previously
breached an APO in the two-year period
preceding the date of this breach. The
Commission also considered the
aggravating factor that unauthorized
persons had access to and presumably
viewed CBI.
The Commission issued a private
letter of reprimand to the attorney.
By order of the Commission.
Issued: December 1, 2023.
Sharon Bellamy,
Supervisory Hearings and Information
Officer.
[FR Doc. 2023–26806 Filed 12–6–23; 8:45 am]
BILLING CODE 7020–02–P
INTERNATIONAL TRADE
COMMISSION
[USITC SE–23–058]
Sunshine Act Meetings
Agency Holding the Meeting: United
States International Trade Commission.
TIME AND DATE: December 14, 2023 at
11:00 a.m.
PLACE: Room 101, 500 E Street SW,
Washington, DC 20436, Telephone:
(202) 205–2000.
STATUS: Open to the public.
MATTERS TO BE CONSIDERED:
1. Agendas for future meetings: none.
2. Minutes.
3. Ratification List.
4. Commission vote on Inv. Nos. 701–
TA–583 and 731–TA–1381
(Review)(Cast Iron Soil Pipe Fittings
from China). The Commission currently
is scheduled to complete and file its
determinations and views of the
Commission on December 21, 2023.
E:\FR\FM\07DEN1.SGM
07DEN1
Federal Register / Vol. 88, No. 234 / Thursday, December 7, 2023 / Notices
5. Outstanding action jackets: none.
CONTACT PERSON FOR MORE INFORMATION:
Sharon Bellamy, Supervisory Hearings
and Information Officer, 202–205–2000.
The Commission is holding the
meeting under the Government in the
Sunshine Act, 5 U.S.C. 552(b). In
accordance with Commission policy,
subject matter listed above, not disposed
of at the scheduled meeting, may be
carried over to the agenda of the
following meeting.
By order of the Commission.
Issued: December 5, 2023.
Sharon Bellamy,
Supervisory Hearings and Information
Officer.
[FR Doc. 2023–26967 Filed 12–5–23; 4:15 pm]
BILLING CODE 7020–02–P
DEPARTMENT OF JUSTICE
Antitrust Division
ddrumheller on DSK120RN23PROD with NOTICES1
United States v. Koch Foods
Incorporated; Proposed Final
Judgment and Competitive Impact
Statement
Notice is hereby given pursuant to the
Antitrust Procedures and Penalties Act,
15 U.S.C. 16(b)–(h), that a proposed
Final Judgment, Stipulation, and
Competitive Impact Statement have
been filed with the United States
District Court for the Northern District
of Illinois, Eastern Division, in United
States v. Koch Foods Incorporated, Civil
Action No. 23–15813. On November 9,
2023, the United States filed a
Complaint alleging that Koch Foods
Incorporated (‘‘Koch’’), one of the
largest poultry processors in the United
States, unlawfully requires independent
chicken farmers to pay Koch an exit fee
if the farmers switch from working with
Koch to working with one of its rivals.
Koch’s practices are alleged to violate
section 202(a) of the Packers and
Stockyards Act and section 1 of the
Sherman Act.
The proposed Final Judgment, filed at
the same time as the Complaint,
requires Koch to refrain from including
a termination payment obligation in any
farmer contracts and from taking any
steps to collect any termination
payments for the next seven years. It
also requires Koch to repay all
termination payments it has received
from farmers, and to reimburse farmers
for legal costs they incurred in
responding to Koch’s efforts to collect
termination payments.
Koch is required to certify that it has
given the required notices to farmers,
made the required payments and
reimbursements within 120 days of
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entry of the Final Judgment, and
submitted any disputed claims for
payment or reimbursement to a referee
selected by the Division, whose decision
will be final. Koch will provide an
annual certification that it continues to
comply with provisions of the proposed
Final Judgment for its duration of seven
years, unless it is terminated earlier by
agreement with the Division and a
determination by the Court that
termination is in the public interest. The
proposed Final Judgment also imposes
other cooperation and reporting
requirements.
Copies of the Complaint, proposed
Final Judgment, and Competitive Impact
Statement are available for inspection
on the Antitrust Division’s website at
https://www.justice.gov/atr and at the
Office of the Clerk of the United States
District Court for the Northern District
of Illinois, Eastern Division. Copies of
these materials may be obtained from
the Antitrust Division upon request and
payment of the copying fee set by
Department of Justice regulations.
Public comment is invited within 60
days of the date of this notice. Such
comments, including the name of the
submitter, and responses thereto, will be
posted on the Antitrust Division’s
website, filed with the Court, and, under
certain circumstances, published in the
Federal Register. Comments should be
submitted in English and directed to
Chief, Civil Conduct Task Force,
Antitrust Division, Department of
Justice, 450 Fifth Street NW, Suite 8600,
Washington, DC 20530 (email address:
ATRJudgmentCompliance@usdoj.gov).
Suzanne Morris,
Deputy Director of Civil Enforcement
Operations, Antitrust Division.
United States District Court for the
Northern District of Illinois Eastern
Division
United States of America, 450 Fifth Street
NW, Washington, DC 20530, Plaintiff, v.
Koch Foods Incorporated, 1300 W Higgins
Road, Suite 100, Park Ridge, IL 60068,
Defendant.
Case No. 1:23–cv–15813
Judge John F. Kness
Complaint
Raising chickens is a bet-the-farm
proposition. Many chicken farmers must
borrow hundreds of thousands of
dollars to finance the construction of
chicken houses—huge structures that
hold over 50,000 chickens each. A
farmer is largely beholden to a poultry
processor, which owns the chicks, feed,
antibiotics, and other inputs for raising
chickens. Without a loan from the bank,
there is no farm; without a contract with
a processor, there is no loan; and
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85311
without the processor’s fair dealing, the
farm may fail.
To secure better working conditions
or pay, a chicken farmer’s only recourse
often is switching processors. Even in
the best of circumstances, competition
for farmers’ chicken growing services is
uncertain because switching processors
can be a costly, risky, and difficult
endeavor. But Koch Foods, a leading
poultry processor, has suppressed
competition even further by imposing
exit penalties on its chicken farmers
who want to switch to a competitor.
Koch’s conduct deprives farmers of the
benefits of competition and lowers their
compensation. Koch’s exit penalties are
an unfair practice under section 202(a)
of the Packers and Stockyards Act and
violate section 1 of the Sherman Act.
These practices should be enjoined.
I. Introduction
1. A chicken farmer’s success depends
on a processor. A farmer must invest
hundreds of thousands of dollars to
build chicken houses to a processor’s
specifications. A bank will loan money
for the construction only if a processor
has agreed to offer the farmer a contract;
the bank often sees the farmer’s contract
before the farmer. After obtaining a loan
and building the houses, the farmer
generally has no practical alternative
but to accept the contract terms for
growing chickens offered by the
processor.
2. Once built, chickens houses cannot
be relocated or readily repurposed. If
the processor provides insufficient
flocks, poor quality chicks, or
substandard feed, the farmer may not
earn enough to meet the terms of the
loan—and can literally lose the farm.
3. Broiler chicken farmers, commonly
called ‘‘growers,’’ generally can contract
only with a processor operating a
processing facility close enough to
transport chickens and feed costeffectively.1 Few growers have more
than three other processors close
enough to contract for their growing
services. And when the grower wants to
switch processors, alternative
processors may not need new growers.
4. For these reasons, processors have
substantial leverage over contract
growers. Where it exists, competition
among processors for chicken growers
can sometimes increase their
compensation and motivate a processor
to provide better terms to farmers.
Growers’ ability to switch processors
1 Most chicken farmers raise ‘‘broilers,’’ the
chickens that are slaughtered and processed for
people to consume. Other chicken farmers raise
breeder hens or pullets (chicks). In at least some
cases, Koch imposed its exit fees on breeder-hen
and pullet farmers as well as broiler farmers.
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07DEN1
Agencies
[Federal Register Volume 88, Number 234 (Thursday, December 7, 2023)]
[Notices]
[Pages 85310-85311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26967]
-----------------------------------------------------------------------
INTERNATIONAL TRADE COMMISSION
[USITC SE-23-058]
Sunshine Act Meetings
Agency Holding the Meeting: United States International Trade
Commission.
TIME AND DATE: December 14, 2023 at 11:00 a.m.
PLACE: Room 101, 500 E Street SW, Washington, DC 20436, Telephone:
(202) 205-2000.
STATUS: Open to the public.
MATTERS TO BE CONSIDERED:
1. Agendas for future meetings: none.
2. Minutes.
3. Ratification List.
4. Commission vote on Inv. Nos. 701-TA-583 and 731-TA-1381
(Review)(Cast Iron Soil Pipe Fittings from China). The Commission
currently is scheduled to complete and file its determinations and
views of the Commission on December 21, 2023.
[[Page 85311]]
5. Outstanding action jackets: none.
CONTACT PERSON FOR MORE INFORMATION: Sharon Bellamy, Supervisory
Hearings and Information Officer, 202-205-2000.
The Commission is holding the meeting under the Government in the
Sunshine Act, 5 U.S.C. 552(b). In accordance with Commission policy,
subject matter listed above, not disposed of at the scheduled meeting,
may be carried over to the agenda of the following meeting.
By order of the Commission.
Issued: December 5, 2023.
Sharon Bellamy,
Supervisory Hearings and Information Officer.
[FR Doc. 2023-26967 Filed 12-5-23; 4:15 pm]
BILLING CODE 7020-02-P