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AG’s memo puts halt to third-party settlements

Joe Mont | June 7, 2017

Attorney General Jeff Sessions has issued a memo to Department of Justice staff and 94 United States Attorney’s Offices barring them from third-party settlements.

The June 5 memo prohibits entering into any agreement on behalf of the United States in settlement of federal claims or charges that directs or provides for a settlement payment to non-governmental, third parties that were not directly harmed by the conduct.

“When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people— not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said in a statement. “Unfortunately, in recent years the Department of Justice has sometimes required or encouraged defendants to make...

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