New Antitrust Charging Policy to Reward Companies' Good Faith Compliance Efforts
It contains two parts, guiding prosecutors in their evaluation of compliance programs at both the charging and sentencing stage of investigations.
July 12, 2019 at 04:05 PM
4 minute read
Now general counsel have a new reason to make sure their companies have a quality compliance program in place—the companies may face fewer or lesser charges from federal antitrust prosecutors.
During a speech at New York University Law School on Thursday, Assistant Attorney General Makan Delrahim announced what he called “a new model for incentivizing antitrust compliance programs.” For the first time, he said the U.S. Department of Justice's Antitrust Division will consider whether a company has a good faith compliance program in place at the charging stage in criminal antitrust investigations.
“The Antitrust Division is committed to rewarding corporate efforts to invest in and instill a culture of compliance,” Delrahim said.
He explained that the division's leniency program provides the “ultimate credit” for effective compliance programs and that it recently has also started crediting prospective compliance efforts at sentencing.
Now Delrahim said it will consider a company's good faith compliance efforts while making charging decisions. He added the division updated its prosecuting manual, deleting a statement saying credit should not be given for compliance at the charging stage.
For the first time, he said the division also has published a guidance document that focuses on evaluating compliance programs in the context of criminal violations of the Sherman Act.
It contains two parts, guiding prosecutors in their evaluation of compliance programs at both the charging and sentencing stage of investigations. He said it also provides compliance officers and the public greater transparency of the division's compliance analysis.
Delrahim said in the past a company had to win the race for leniency in DOJ's all-or-nothing approach.
“I believe the time has now come to improve the Antitrust Division's approach and recognize the efforts of companies that invest significantly in robust compliance programs. In the words of our former Deputy Attorney General Rod Rosenstein, '[t]he fact that some misconduct occurs shows that a program was not foolproof, but that does not necessarily mean that it was worthless. We can make objective assessments about whether programs were implemented in good faith.'”
He said the new approach came, in part, from suggestions at a public workshop held last year with in-house counsel, outside counsel and international enforcers.
“Therefore, effective immediately,” Delrahim said, “the Antitrust Division will: (1) change its approach to crediting compliance at the charging stage; (2) clarify its approach to evaluating the effectiveness of compliance programs at the sentencing stage; and (3) for the first time, make public a guidance document for the evaluation of compliance programs in criminal antitrust investigations.”
In a May speech, Delrahim hinted that such a change was coming. Again citing feedback from the workshop, he said, “We can and must do more to reward and incentivize good corporate citizenship.”
Based on that speech, antitrust lawyers at Paul, Weiss, Rifkind, Wharton & Garrison wrote an article suggesting robust compliance programs could provide “significant new benefits to companies facing criminal antitrust exposure.”
The article stated, “The potential value of a strong antitrust compliance program—beyond its inherent good-governance value—has been increased, perhaps very much, and it behooves companies to revisit their compliance programs to ensure that they are 'effective and robust,' thoughtfully designed, up-to-date and diligently implemented.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All'Serious Disruptions'?: Federal Courts Brace for Government Shutdown Threat
3 minute readWill Khan Resign? FTC Chair Isn't Saying Whether She'll Stick Around After Giving Up Gavel
FTC, DOJ Withdrawal of Antitrust Guidelines for Collaboration Infuriates Republicans
5 minute readTrending Stories
- 1Recent Decisions Regarding the Telephone Consumer Protection Act
- 2The Tech Built by Law Firms in 2024
- 3Distressed M&A: Mass Torts, Bankruptcy and Furthering the Search for Consensus: Another Purdue Decision
- 4For Safer Traffic Stops, Replace Paper Documents With ‘Contactless’ Tech
- 5As Second Trump Administration Approaches, Businesses Brace for Sweeping Changes to Immigration Policy
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250