This is terrific: @USDOJ ends settlement slush fund practice of funneling winnings to private groups. Well done! https://t.co/Vt3BSsFvmP
— Walter Olson (@walterolson) June 7, 2017
Here's the announcement: https://t.co/AnsEYM1Z1A and memo: https://t.co/eOJAXXXsb9
— (((tedfrank))) (@tedfrank) June 7, 2017
Amazing! Those settlements just shoveled money to Prog political groups, and Rubin wanted it to continue.
— Mark Noonan (@Mark_E_Noonan) June 7, 2017
This was a disgustingly partisan policy. "DOJ ends Holder-era ‘slush fund’ payouts to outside groups" https://t.co/yFC8Tf3W9F
— Mark Hemingway (@Heminator) June 7, 2017
The Justice Department announced Wednesday it will no longer allow prosecutors to strike settlement agreements with big companies directing them to make payouts to outside groups, ending an Obama-era practice that Republicans decried as a “slush fund” that padded the accounts of liberal interest groups.
In a memo sent to 94 U.S. attorneys' offices early Wednesday, Attorney General Jeff Sessions said he would end the practice that allowed companies to meet settlement burdens by giving money to groups that were neither victims nor parties to the case.
Sessions said the money should, instead, go to the Treasury Department or victims.
“When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people—not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said in a statement.
