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DOJ Policy Change Could Impact Crisis Suit Payouts

A memo from Attorney General Jeff Sessions has revealed a policy change at the U.S. Department of Justice: DOJ attorneys can no longer send settlement money to community groups or third-party vendors not directly harmed by the defendant in question. The practice had become common under the Obama administration, as prosecutors tacked on additional settlement costs to fund groups fighting community blight and serving other mortgage-related purposes across the nation. Critics of the practice called it a “slush fund” for promoting partisan political goals.

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