Recently, the US Department of Justice announced new guidelines intended to strengthen the pursuit of individual corporate wrongdoing. The guidelines require corporations to identify all culpable executives and disclose all facts related to their misconduct before receiving any cooperation credit. They also prohibit line prosecutors from reaching corporate settlements that protect individual wrongdoers from criminal or civil liability without the approval of senior management. These key provisions will have significant consequences for corporations facing government investigations. Despite their intent, the guidelines could lead to a decrease in corporate criminal resolutions rather than an increase in individual prosecutions. To read our full advisory analyzing the new guidelines, please click here.
Brian Heberlig, a partner in Steptoe’s Washington office, authored this advisory.