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A significant development for companies facing potential liability
The U.S. Attorney's Office for the Eastern District of Pennsylvania (EDPA) last week announced a new corporate transparency initiative designed to "incentivize companies to make a voluntary self-disclosure (VSD) of potential criminal conduct," offering "appropriate incentives and rewards for companies that disclose unlawful misconduct."
The full terms of the initiative and disclosure steps are available in the EDPA's announcement here.
This initiative follows a similar policy issued by the U.S. Department of Justice's Criminal Division in May 2025. However, the EDPA's approach is independent and highlights the department's broader mandate that all DOJ components responsible for corporate crime must maintain a voluntary disclosure policy.
Why this matters for companies
VSD policies vary across DOJ offices, making it essential for companies to understand the requirements of each. The potential benefits of qualifying for a disclosure are significant, including the possibility of avoiding criminal charges against the company altogether.
However, achieving those benefits requires careful navigation of complex rules.
Key characteristics of the EDPA policy
Like many DOJ disclosure policies, the EDPA initiative requires that a voluntary self-disclosure be:
- Voluntary: made without preexisting obligation.
- Timely: reported promptly once misconduct is discovered.
- Thorough: supported by a complete and transparent internal investigation.
These requirements make clear that experienced counsel must be engaged quickly to conduct an independent investigation and ensure compliance with disclosure standards.
Ongoing obligations after disclosure
The EDPA initiative also emphasizes that disclosure is not a one-time event. Companies have a continuing duty to investigate and disclose new information as it becomes available. Managing this process requires counsel familiar with working alongside government investigators and adept at balancing transparency with corporate protections.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
