Lara A. Covington and Michael E. Hantman of Holland & Knight LLP discuss the DOJ’s new policy requiring DOJ attorneys to coordinate with one another and other law enforcement bodies, to avoid “piling on” companies facing multiple regulatory penalties for a single instance of misconduct.
While the policy has been welcomed by corporations, Covington and Hantman caution that it provides exceptions for those not obeying its conditions. For example, the new policy document lists four factors used in determining when “piling on” serves the interest of justice:
- The egregiousness of a company’s misconduct;
- Statutory mandates regarding penalties, fines, and/or forfeitures;
- The risk of unwarranted delay in achieving a final resolution; and
- The adequacy and timeliness of a company’s disclosures and its cooperation with the DOJ, separate from any such disclosures and cooperation with other relevant enforcement authorities.