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Deep Dive 172 – Third-Party Payments in Government Litigation Settlements

Deep Dive 172 – Third-Party Payments in Government Litigation Settlements
Apr 21, 2021 · 1h

In June of 2017, then-Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from directing settlement payments to non-governmental third parties that are "neither victims nor parties...

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In June of 2017, then-Attorney General Jeff Sessions issued a memo prohibiting the Department of Justice from directing settlement payments to non-governmental third parties that are "neither victims nor parties to the lawsuits" when the Department is engaged in litigation. The memo halted a practice that was utilized by the Bush and Obama administrations and now may make a return under the Biden administration.

Some view these third-party payments in government litigation settlements as an unconstitutional encroachment on Congress's spending power that should remain proscribed, but some see them as a legitimate measure to advance policy goals, particularly when it comes to environmental enforcement.

On April 14, the Federalist Society's Regulatory Transparency Project and Practice Groups hosted a webinar featuring experts on both sides of the issue discussing the practice and whether it will – and should – be utilized once again by the new administration.

Featuring:
- Ryan Dean Newman, Former Acting Assistant Attorney General, Office of Legal Policy, United States Department of Justice
- Justin A. Savage, Global Co-Lead, Environmental Team, Sidley Austin LLP
- John Shu, Attorney and Legal Commentator
- [Moderator] Annie Donaldson Talley, Partner, Luther Strange and Associates

Visit our website – www.RegProject.org – to learn more, view all of our content, and connect with us on social media.
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Author The Federalist Society
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