12/23/2024

U.S. Halts Settlements Requiring Companies to Donate to Third Parties

Attorney General Jeff Sessions has ordered prosecutors to stop settling corporate wrongdoing cases by requiring companies to make donations to third-party groups, a feature of some Obama-era bank settlements that congressional Republicans had opposed.

In a brief, one-page memo dated Monday and released on Wednesday, Mr. Sessions told Justice Department officials they could no longer include any provision in a civil or criminal settlement “that directs or provides for a payment or loan to any non-governmental person or entity that is not a party to the dispute.”

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