Attorney General James Calls for Review of Hewlett Packard Merger Settlement

September 5, 2025

NEW YORK - New York Attorney General Letitia James today joined a coalition of 17 other attorneys general in sending a letter opposing a recent settlement secured by the United States Department of Justice (DOJ) that would allow Hewlett Packard Enterprise (HPE) to merge with a top competitor, Juniper Networks (Juniper), while doing nothing to address the higher costs and decreased competition likely to result. In a letter to DOJ, Attorney General James and the coalition assert that recent reporting and statements from former DOJ senior staff indicate that DOJ's approval of the merger is the result of corrupt backroom dealing between HPE and top DOJ officials. While staff and senior leaders in DOJ's Antitrust Division opposed the merger, they were overruled by top DOJ officials who had personal relationships with consultants and lobbyists hired by HPE. As Attorney General James and the coalition argue in the letter, this conduct likely violates federal laws meant to ensure that merger settlements are not the product of undue influence. The coalition is asking the judge in the Northern District of California to hold hearings to investigate any corrupt practices that led to the settlement and block the settlement if the allegations of corruption are proven true.

"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."

As Attorney General James and the coalition assert in their letter, recent press reports and statements from former DOJ employees reveal a highly irregular process that resulted in a harmful merger settlement between HPE and DOJ. As alleged in the reports, DOJ Chief of Staff Chad Mizelle and Acting Associate Attorney General Stanley Woodward were lobbied by individuals hired by HPE who had close ties to the Trump administration. One article details how HPE's consultants and lawyers engaged in "boozy backroom meetings" with DOJ officials at a Washington, DC club. Mizelle and Woodward also allegedly made secret side agreements with HPE that are not in the final merger settlement. Mizelle then overruled senior leadership in the DOJ's Antitrust Division who opposed the HPE merger and approved a settlement that failed to address the harms that DOJ had previously identified in the lawsuit it filed to block HPE's merger.

Two senior Antitrust Division attorneys appointed by President Trump's own administration were fired for opposing the settlement. One of the fired attorneys, former Principal Deputy Assistant Attorney General Roger Alford, has spoken out publicly against the settlement and called it a "scandal" that represented the "Rule of Lobbyists" over the "Rule of Law." The resulting merger settlement does nothing to address the antitrust concerns DOJ initially raised with its lawsuit, including DOJ's finding that a merger between HPE and Juniper would increase costs for consumers by up to 14 percent.

Attorney General James and the coalition argue in their letter that if the allegations of lobbying pressure and secret side arrangements are true, then high-level political appointees at DOJ breached the public trust and the settlement violates the Tunney Act.

The Tunney Act is a post-Watergate law enacted by Congress in 1974 to ensure that antitrust settlements reached by the Justice Department are based on the merits rather than undue influence by powerful corporations and their well-connected lobbyists. Under the law, the Justice Department must seek approval of all antitrust settlements from the courts, and the courts must make independent judgments that a settlement is in the public interest.

Attorney General James and the coalition are asking the court to hold hearings to examine whether the allegations of corruption are true, and if so, refuse to approve the settlement. Joining Attorney General James in this action are the attorneys general of Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin.