Court Ruling to Decide the Fate of Deferred Prosecution Agreements

The U.S. Court of Appeals for the D.C. Circuit is set to rule in a case that could decide the fate of deferred prosecution agreements, which are increasingly used by the Justice Department as a corporate enforcement tool.

Some judges — who must approve such agreements — have become skeptical of such deals. In February, a judge rejected a deferred prosecution agreement involving Dutch aerospace firm Fokker Services BV. That judge’s decision is now being reviewed by the U.S. Court of Appeals.

“It will be the first decision by a circuit court grappling with this issue and could have lasting impacts on how major corporate matters are resolved,” said Charles E. Duross, a partner at Morrison & Foerster LLP in Washington, D.C and former Justice Department official.

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