DOJ and Keyspan settle antitrust complaint using novel approach of profit disgorgement | Practical Law
On 2 February 2011, the US District Court for the Southern District of New York approved a consent decree requiring Keyspan Corp. (Keyspan), an electricity generator, to disgorge $12 million in profits to the United States. The US Department of Justice's complaint alleged that Keyspan manipulated electricity prices in New York City using a swap agreement in violation of Section 1 of the Sherman Act. The swap agreement had the likely effect of increasing capacity prices for retail electricity suppliers who purchased electricity capacity, and, in turn, increasing the prices consumers pay for electricity. The Court noted that the consent decree presented a "novel area of law: whether the Department of Justice can seek disgorgement for a Sherman Act violation".