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Tags: US | Sues | Stop | H&R | Block | Purchase | TaxAct

US Sues to Stop H&R Block Purchase of TaxAct Software

Monday, 23 May 2011 11:03 AM

The U.S. Justice Department sued H&R Block Inc. to stop its proposed purchase of TaxAct, saying the combination of the companies would reduce competition in the growing market for consumer tax preparation software.

“The combination of H&R Block and TaxAct would likely lead to millions of American taxpayers paying higher prices for digital do-it-yourself tax preparation products,” Christine Varney, the assistant attorney general in charge of the Department of Justice’s Antitrust Division, said in an e-mailed statement today.

H&R Block agreed to buy 2SS Holdings on Oct. 13 in a transaction valued at $287.5 million, according to the statement. H&R Block’s acquisition of 2SS Holdings would eliminate a company that has aggressively competed with H&R Block and “disrupted” the U.S. digital do-it-yourself tax preparation market through low pricing and product innovation, the department said in its antitrust complaint.

An end to head-to-head competition between TaxAct and H&R Block would leave only two major consumer digital tax preparation providers, the department said in its statement.

Gene King, a spokesman for Kansas City, Missouri-based H&R Block, didn’t immediately return a phone call seeking comment.

H&R Block fell 36 cents, or 2.2 percent, to $15.97 at 10:22 a.m. in New York Stock Exchange composite trading.

The case is U.S. v. H&R Block, 1:11-cv-00948, U.S. District Court for the District of Columbia (Washington).

© Copyright 2022 Bloomberg News. All rights reserved.


FinanceNews
The U.S. Justice Department sued H R Block Inc. to stop its proposed purchase of TaxAct, saying the combination of the companies would reduce competition in the growing market for consumer tax preparation software. The combination of H R Block and TaxAct would likely lead...
US,Sues,Stop,H&R,Block,Purchase,TaxAct,Software
219
2011-03-23
Monday, 23 May 2011 11:03 AM
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