New DOJ Policy Regarding Individual Accountability For Corporate Wrongdoing

On September 9, 2015, the U.S. Department of Justice announced a new policy regarding individual accountability for corporate misconduct.  The policy, described in a memo authored by Deputy Attorney General Sally Yates¹, posits that "one of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetrated the wrongdoing."  The focus on individuals represents the first formal announcement of a policy shift that Department of Justice (DOJ) officials have hinted at during the past year.

Going forward, the Justice Department will require that companies investigate and disclose individual wrongdoing before a company will be eligible to receive any credit for cooperation. Further, companies should expect that the Justice Department will pursue individuals civilly, regardless of ability to pay, in an effort to promote deterrence of future violations.  The policy also makes clear that civil and criminal division