FT reported:
Under the policy, the DoJ will not bring charges against an acquirer that voluntarily reports misconduct committed by a company it buys within six months of the deal closing, whether the illegal activity was identified before or after the purchase.
Let's say the illegal activity was identified during the acquirer's due diligence undertaking. That acquirer is knowingly taking on that legal risk.
What is the potential acquirer's ethical obligation when they discover the illegal activity? Do they report it to pertinent legal authorities? Do they inform the current board of directors?
Let's say they do none of that. How nice of the DOJ to suspend criminal charges against that acquirer should they report it within six months of closing.
