Mandatory Disclosure Rule

The September 9, 2015 memorandum issued by Deputy Attorney General Yates makes clear that the Government intends to focus its investigative spotlight on possible False Claims Act violations by individuals, in addition to companies. “One of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetrated the wrongdoing.” As the leverage for this new focus, corporations are advised that to be eligible for “any” cooperation credit, they must provide “all relevant facts” about individuals involved in the misconduct. As Ms. Yates said in her public remarks the day after the memo was released: “It’s all or nothing.”

The Yates Memo raises important questions concerning how the new approach will affect Government contractors’ actions under the Mandatory Disclosure Rule. Does DOJ’s focus on individuals mean that the practices and procedures companies have developed for compliance with the Mandatory Disclosure Rule must change? To what extent should individuals be the focus of internal investigations and disclosures in order for a contractor’s disclosure to be acceptable?
Continue Reading The Yates Memo – Will It Change the Application of the Mandatory Disclosure Rule?

Capitol_30749MediumOn March 31, 2014, the Armed Services Committees of the Senate and the House of Representatives sent letters to industry associations, the ABA, and other organizations seeking suggestions for reducing the cost of defense procurement. 

A suggestion that could reduce costs for both Government and industry and improve working relationships is to undertake a review of the experience with the mandatory disclosure rule which now has been in place for more than five years. Presumably, both Government and contractors have sufficient experience to identify best practices for compliance, as well as accommodations and changes that could lessen the burden of the rule. A dialog should be possible about aspects of compliance with the rule that consume time and resources, but produce little meaningful benefit.


Continue Reading Mandatory Disclosure Rule: Suggestion for Improvement