DOJ Issues Internal Guidance on Penalty Mitigation in False Claims Act Cases
The Department of Justice on May 7 released a guidance document for its lawyers on the mitigation of penalties in False Claims Act cases. Under the new policy, “cooperation credit” in False Claims Act cases can be earned “by voluntarily…
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disclosing misconduct unknown to the government, cooperating in an ongoing investigation, or undertaking remedial measures in response to a violation,” DOJ said in a press release. That applies even where the government has already launched an investigation if the misconduct being disclosed is not part of the government investigation’s scope, it said. DOJ will also take into account corrective action by companies, such as “undertaking a thorough analysis of the root cause of the misconduct, appropriately disciplining or replacing those responsible for the misconduct, accepting responsibility for the violation and implementing or improving compliance programs to prevent a recurrence,” it said. Cooperation credit will usually take the form of a reduction in the damages multiplier and civil penalties, DOJ said. There has been a general uptick in False Claims Act whistleblower cases related to customs violations in recent years (see 1806140044).