United States v. W.T. Grant Co.

Hancock (defendant), a partner at Lehman Bros., served on the boards of six corporations, including three pairs of direct competitors (W.T. Grant Co. and S.H. Kress & Co.; Sears Roebuck and Bond Stores; Kroger and Jewel Tea), allegedly violating the Clayton Act's ban on interlocking directorates. After roughly five years of unsuccessful administrative efforts to persuade Hancock the practice was illegal, the government sued seeking termination of the interlocks and an injunction against future violations; Hancock resigned from three of the boards after the suit was filed, and the district court granted summary judgment finding the case moot. The government sought Supreme Court review.