Advisory on New DOJ Guidance on Prosecution of Business Organizations

Crimes/FCPA;

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On August 28, 2008, Deputy Attorney General Mark R. Filip released revised guidelines concerning the Principles of Federal Prosecution of Business Organizations (the "Filip Principles"). The Filip Principles, which replace guidelines previously issued by Deputy Attorney General Paul J. McNulty (the "McNulty Memorandum"), provide insight into the current tenor of the Justice Department, and are of utmost importance to business organizations and other interested parties in determining the most appropriate course of conduct in light of evidence or allegations of corporate wrongdoing and in structuring corporate compliance environments.

This Alert highlights certain of the significant differences between the Filip Principles and the McNulty Memorandum, including the treatment of attorney-client privilege in the context of cooperating with federal prosecutors and the continued ability of corporations to advance fees and expenses to corporate officials whose conduct is under review. The Filip Principles also emphasize the importance of thorough self-review and remediation by corporations when faced with potential wrongdoing, particularly in situations where a company may decide against self disclosure of that misconduct.

I hope that you find the attached Alert informative.