US Offers Merger Safe Harbor to Companies Disclosing Crime (2)

Companies can avoid charges when self-reporting violations at acquisition targets, the Justice Department announced Wednesday.

DOJ won’t prosecute, provided the business discloses the misconduct within six months of a deal closing, corrects the issue within a year, and pays back illegally-gained profits, Deputy Attorney General Lisa Monaco said at a compliance conference in Chicago.

Prosecutors will have the ability to extend those deadlines when warranted, she said.

The policy shift expands and formalizes the department’s previous efforts to inform businesses they could receive declinations when turning over evidence of wrongdoing they discover when conducting M&A due diligence.

It advances DOJ’s ...