The U.S. Department of Justice is experiencing a succession of staff departures, potentially making the way newly appointed prosecutors conduct investigations less predictable. There have also been reports of antitrust settlements in which agreement by the teams on the ground was bypassed.
This article examines how developments at the U.S. Department of Justice (DOJ) could affect legal and compliance functions at Japanese companies. Among the latest developments at the DOJ, it highlights the possibility that investigative practices may change.
According to media reports, the DOJ is experiencing an accelerating outflow of personnel. Experienced prosecutors have resigned from at least 7 divisions, and approximately 2,000 DOJ attorneys are said to have left. Moves to major law firms have increased, bringing changes to the competitive environment for hiring as well.
This situation is also said to affect Japanese companies. Given the high level of expertise of federal prosecutors, commentators have pointed out that investigative strategies under newly appointed prosecutors could differ from previous patterns. Japanese companies may also face situations requiring new approaches to their legal strategies.
Meanwhile, there have also been reports of antitrust cases in which senior officials decided on settlements without going through the investigative teams on the ground. As the DOJ's actions become more difficult to predict, strengthening their relationships with the U.S. DOJ and their risk management has become a challenge for Japanese companies.