TBA Law Blog

Posted by: Katharine Heriges on Jun 8, 2017
Attorney General Jeff Sessions issued a memo on Tuesday telling Department of Justice lawyers to stop directing settlement funds to nongovernmental organizations unaffiliated with the cases, the ABA Journal reports. The practice, popularized during the Obama administration, was especially common in settlements with mortgage lenders accused of wrongdoing during the financial crisis of 2008. That money was often directed to community groups, including legal aid organizations. The new policy forbids these settlements unless the funds go directly to remedy direct harm from the wrongdoing; all other funds will go to the U.S. Treasury.