DOJ Secures First-Ever Guilty Verdict in Criminal Labor Market Antitrust Case: Conviction Also Highlights Fraud Risks in M&A Sale for Business Under Federal Criminal Probe

Alert

23 April 2025

6 min read

Rahul Rao |

J. Mark Gidley |

Kathryn Jordan Mims |

Jaclyn Phillips |

Kelsey Greenagel

A federal jury in Las Vegas has convicted Eduardo "Eddie" Lopez, a former executive of a home healthcare staffing company, on charges of wage-fixing and wire fraud.¹ The conviction marks the first successful jury verdict for the U.S. Department of Justice (DOJ) Antitrust Division in a criminal labor market antitrust case—a policy initiative the Antitrust Division first announced in 2016 and launched in earnest in 2020.²

Key Facts

Sherman Act Wage-Fixing Conspiracy: Lopez was convicted of conspiring with other home health executives between 2016 and 2019 to suppress wages paid to registered nurses and licensed practical nurses in the Las Vegas area. Federal prosecutors alleged that the conspiracy harmed hundreds of healthcare workers providing in-home services.
Fraudulent Concealment in M&A Transaction: In 2021, Lopez sold his home health staffing company for more than $10 million. He was convicted of five counts of wire fraud for failing to disclose the company's involvement in an active criminal antitrust investigation by the FBI. As the Antitrust Division's press release notes, at the time of the sale, Lopez had already been interviewed by the FBI, received a grand jury subpoena, and had his phone seized under a search warrant.³
Trial Outcome: The jury returned its verdict on the 15th day of trial after deliberating for a day and a half. Sentencing is scheduled for July 14, 2025. Lopez faces up to 10 years in prison and a $1 million criminal fine for the Sherman Act violation and up to 20 years for each count of wire fraud.
Post-Trial Procedure: Following the jury's verdict, Lopez has filed a motion for mistrial, that is pending, arguing that prosecutors improperly referenced attorney-client privileged communications and violated a court order during closing arguments.⁴ Post-trial motions and appeals are expected.

Context and Impact of the Lopez Verdict

This was the last case in DOJ's initial wave of criminal prosecutions targeting labor market conduct. While earlier prosecutions ended in plea deals, mistrials, acquittals, and dismissals,⁵ Lopez's conviction gives DOJ a long-sought courtroom win. Even with no additional public cases currently pending, the verdict may shape how the Antitrust Division approaches labor market conduct going forward—and labor-related competition issues remain a focus of both civil and criminal enforcement across federal and state agencies.

DOJ's Enforcement Position

DOJ Antitrust Division Assistant Attorney General Abigail Slater described wage-fixing agreements as "nakedly unlawful attempts at unjustly profiting off American workers."⁶ She added: "The agreement is the crime. The Antitrust Division will zealously prosecute those who seek to unjustly profit off their employees."⁷

Practical Takeaways

Labor Market Enforcement Continues, but Legal Boundaries Remain Contested: DOJ's Antitrust Division now has its first jury conviction in a labor market antitrust case. While the Lopez case involved wage-fixing, DOJ has also brought "naked" no-poach cases under the same per se theory. To date, no jury has convicted on a no-poach charge, and several courts have expressed skepticism about per se criminal treatment in that context. That said, as the Lopez case illustrates, DOJ's likelihood of success may increase when labor-related antitrust charges are brought alongside other, non-antitrust offenses—such as the wire fraud charges in this case. Companies and individuals facing potential criminal exposure should assess their risk and defense strategy in light of the full charging landscape.
Disclosure Obligations in M&A Transactions as Potential Exposure to Criminal Offenses: Lopez's wire fraud convictions stemmed from the government's allegation of nondisclosure of an active criminal investigation during the sale of his company. The case underscores the serious risk of fraud claims when sellers withhold material information during an M&A transaction—and highlights the importance of thorough diligence and full transparency in dealmaking, particularly where antitrust exposure is concerned. The government's press release argues that Mr. Lopez had knowledge that the Antitrust Division probe was still an issue based on a grand jury subpoena and the seizure of his cell phone. Given the sometimes-lengthy pendency of criminal antitrust investigations by the Division, the indictment and conviction creates uncertainty and risks in M&A transactions.
Reinforce Antitrust Compliance Programs: Companies should ensure that their compliance programs explicitly address labor market risks. In the U.S., companies are well advised to include clear prohibitions on wage coordination and agreements not to hire or solicit competitors' employees—as compared to legitimate, procompetitive collaborations, joint ventures, and other activities.⁸
Evaluate Exposure and Consider Leniency Where Appropriate: The Antitrust Division continues to prioritize early cooperation and self-reporting in criminal antitrust matters through its Corporate Leniency Program, which offers non-prosecution protection to companies and individuals that voluntarily disclose antitrust violations, particularly if a "first in."⁹ Companies that identify potential wage-fixing or no-poach risks—whether current or historical—should have counsel assess the facts and exposure and weigh the pros and cons of appropriate steps.¹⁰

_{1 Verdict, U.S. v. Lopez, No. 23-cr-00055 (D. Nev. Apr. 15, 2025), ECF No. 662;}_{Press Release, U.S. Department of Justice, Jury Convicts Home Health Agency Executive of Fixing Wages and Fraudulently Concealing Criminal Investigation (Apr. 14, 2025), ( "DOJ Press Release"). Press reports indicate that the defense intends to pursue an appeal}_.
2_{Antitrust Guidance for Human Resource Professionals, Department of Justice Antitrust Division & Federal Trade Commission, October 2016}_{. For discussion of the FTC's evolving policy in this area, see Four Key Antitrust Events in Q4 2021 Target Labor Markets and Aim to Protect Workers: Here's What You Need to Know, WHITE & CASE LLP, J. Mark Gidley and Kathryn Jordan Mims (Jan. 11, 2022), available at}_{https://www.whitecase.com/insight-alert/four-key-antitrust-events-q4-2021-target-labor-markets-and-aim-protect-workers-heres}_{; Press Release, U.S. Department of Justice, Former Owner of Health Care Staffing Company Indicted for Wage Fixing (Dec. 10, 2020), available at}_{https://www.justice.gov/archives/opa/pr/former-owner-health-care-staffing-company-indicted-wage-fixing}_{.
3 DOJ Press Release.
4 Defendant Lopez's Third Motion for Mistrial, Lopez (Apr. 15, 2025), ECF No. 654.
5 See Non-Competes: If You Can't Use Them There, Can You Use Them Anywhere? What New York's Potential Non-Compete Ban Adds to the Labor and Antitrust Conversation, WHITE & CASE LLP, Jaclyn Phillips, Kathryn Jordan Mims, and Katya El Tayeb (Aug. 15, 2023), available at}_{https://www.whitecase.com/insight-our-thinking/non-competes-if-you-cant-use-them-there-can-you-use-them-anywhere-what-new}_{.
6 DOJ Press Release.
7}_Id_{.
8 How Cos. Can Weather Growing DOJ Labor Antitrust Scrutiny, WHITE & CASE LLP, Eric Grannon and Adam Acosta (Mar. 10, 2021), available at}_{https://www.whitecase.com/insight-our-thinking/how-cos-can-weather-growing-doj-labor-antitrust-scrutiny}_{.
9 Cite:}_{Leniency Policy}_{, Antitrust Division, U.S. Department of Justice,}_{https://www.justice.gov/atr/leniency-policy}_{(last visited Apr. 16, 2025).
10 Deputy Attorney General Lisa O. Monaco announced a program in 2023 for acquiring companies that learn of potential criminal misconduct by an acquired business—whether pre- or post-closing. Such companies should consider DOJ's Safe Harbor Policy, which offers a presumption of declination if the misconduct is voluntarily disclosed within six months of closing and fully remediated within one year. The policy applies to bona fide, arms-length transactions and underscores the importance of integrating compliance into M&A planning. Companies should ensure robust diligence before and after closing to identify potential misconduct and consult counsel to assess eligibility for Safe Harbor protections. Deputy Attorney General Lisa O. Monaco Announces New Safe Harbor Policy for Voluntary Self-Disclosures Made in Connection with Mergers and Acquisitions, U.S. DEPARTMENT OF JUSTICE (Oct. 4, 2023)}, _{available at}_{https://www.justice.gov/archives/opa/speech/deputy-attorney-general-lisa-o-monaco-announces-new-safe-harbor-policy-voluntary-self}_.

_{White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.}

_{This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.}