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AAJ Statement on House Passage of Bill to Prohibit Legal Settlements that Include Donations to Non-Profit Organizations

September 07,2016

Washington, DC— The following is a statement from American Association for Justice CEO Linda Lipsen on today’s passage of the so-called “Stop Settlement Slush Funds Act of 2016” [H.R. 5063] in the United States House of Representatives, which will strip the federal government of its authority to reach legal settlements with corporate wrongdoers if the settlement calls for the corporation to contribute to a non-profit organization.

“The donations that H.R. 5063 seeks to ban often play an important role in settlements for government enforcement actions, especially when the victims of corporate misconduct cannot be identified. In such cases, justice is only served by ensuring that settlement funds go to a worthy alternative, rather than reverting back to the very corporations that broke the law. Congress should focus on real solutions to real problems, not on ensuring that corporate wrongdoers can recoup settlement funds they have agreed to pay.”

Sarah Jones