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Directors' & Officers' Right To Counsel Uncertain

Three years ago, the Justice Department issued the Thompson Memo, stating that one of the nine factors prosecutors will look at in deciding whether or not to indict is whether the target firm has

By Steven Tuckey | Updated on November 05, 2006

Just how far can a company go in cozying up to the Justice Department in order to avoid an indictment that can turn into a death-sentence?

Three years ago, the Justice Department issued the Thompson Memo, stating that one of the nine factors prosecutors will look at in deciding whether or not to indict is whether the target firm has stopped paying the legal fees to employees caught up in investigation. The memo has come under attack from judges and lawmakers who feel it could be an infringement on employees’ right to indemnification, and essentially their right to counsel.

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