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House OKs Bill To Restrict Donations In DOJ Settlements

Law360, Washington (October 24, 2017, 8:58 PM EDT) -- The House of Representatives passed a bill Tuesday to restrict the use of “mandatory donations” in settlements from suits brought by the U.S. Justice Department and other federal agencies.

The Stop Settlement Slush Funds Act of 2017 passed 238-183 over the objection of Democrats who said the measure would hurt the government’s ability to address the harms caused by environmental, consumer protection and other violations. The bill’s backers said it would cut down on the constitutionally dubious practice of distributing settlement funds to third parties.

The legislation was introduced by Rep. Bob Goodlatte, R-Va., after a House Judiciary and Financial Services...

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