On March 10, 2026, the U.S. Department of Justice (DOJ) announced a new policy indicating it will not prosecute companies that voluntarily disclose misconduct, cooperate with investigators, and remediate wrongdoing.
Quick Hits
- On March 10, 2026, the DOJ announced that it will not prosecute companies when they voluntarily self-disclose misconduct, fully cooperate with the department’s investigation, and correct the misconduct in a timely and appropriate manner.
- Absent aggravating factors, guilty pleas will not be an option when a corporation self-reports, cooperates, and remediates wrongdoing.
- The new policy became effective immediately.
The DOJ said that the policy, which took effect immediately, is intended to discourage corporate wrongdoing and encourage self-reporting of violations.
The DOJ investigates a wide range of corporate crimes, including financial fraud, identity theft, insider trading, foreign bribery, money laundering, sanctions evasions, government benefit fraud, and healthcare kickback schemes. The new enforcement policy applies to all types of corporate criminal cases, except those relating to antitrust matters. It applies to companies in all industries, including financial services.
To receive a declination (or decision to not prosecute), a company must:
- promptly self-report conduct previously unknown to the DOJ,
- self-report before an imminent threat that DOJ would discover the misconduct,
- have no previous obligation to self-report to the DOJ,
- fully cooperate with investigators, and
- promptly correct violations.
The DOJ announcement encourages companies to quickly self-report violations, even before they finalize an internal investigation. If a whistleblower reports wrongdoing both internally and to the DOJ, the company will still be exempt from prosecution if the company self-reports to the DOJ within 120 days after receiving the whistleblower’s internal report.
If a company fully cooperated and timely remediated misconduct, but is ineligible for a declination because of aggravating factors that warrant a criminal resolution, the DOJ may provide a non-prosecution agreement, allow a term length of less than three years, reduce the fine by 50 percent to 75 percent, and not require an independent compliance monitor.
For example, aggravating factors could include the egregiousness or pervasiveness of the misconduct, the severity of harm caused by the misconduct, or previous criminal charges of similar misconduct within the last five years.
On March 17, 2026, the DOJ granted a declination to Balt SAS and its subsidiary Balt USA LLC, a medical device manufacturer (collectively, Balt). The company voluntarily self-disclosed that an internal investigation uncovered bribery to a physician at a French hospital in order to ensure the hospital would purchase medical devices from Balt. The DOJ found the company took disciplinary action against the people involved, disgorged itself from the gains from illegal actions, and met the criteria for a declination.
Next Steps
If criminal activity occurs, companies may receive a reduced penalty or steer clear of prosecution if they meet the multipronged criteria for voluntary self-reporting. They may wish to self-report to the DOJ as soon as possible so they can fulfill the timeliness standard.
Employers can remind employees about the proper avenues to report misconduct internally. They also may wish to review and update their retaliation policies to further encourage receipt of internal reports. However, employers cannot prevent an employee from reporting out a possible violation of law to a government agency. It is illegal to harass or retaliate against an employee or former employee for reporting illegal activities, fraud, or safety violations.
This article was co-authored by Leah J. Shepherd, who is a writer in Ogletree Deakins’ Washington, D.C., office.
