US Sues H&R; Block (NYSE: HRB) to Stop Purchase of TaxAct Software
Monday, May 23, 2022 1:30 PM

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The US justice department filed a lawsuit on Monday to prevent H&R Block Inc. (NYSE: HRB) from acquiring 2SS Holdings Inc. developer of the TaxAct digital tax preparations business, 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. "TaxACT has aggressively competed in the digital do-it-yourself tax preparation market with innovations such as free federal filing. If this merger is allowed to proceed, that type of innovation will be lost," she said in a statement.

H&R Block, the largest U.S. tax preparer, agreed to acquire the company last October in a deal worth $287.5 million. The company had previously estimated that the deal would have increased its earnings per share by 5 cents.

The Justice Department accused H&R Block of persuading people that the acquisition would eliminate a competitor and help it control the industry pricing and also assist in further price erosion.

Shares of H&R block were trading lower by 0.61 percent to $16.23 on Monday.

 

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Market news:

  • US Sues H&R Block (NYSE: HRB) to Stop Purchase of TaxAct Software May 23, 2022 01:30 PM

    The US justice department filed a lawsuit on Monday to prevent H&R; Block Inc. (NYSE: HRB) from acquiring 2SS Holdings Inc. developer of the TaxAct digital tax preparations business, saying the combination of the companies would reduce competition in the growing market for consumer tax preparation software.

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