The Department of Justice (DOJ) has finalized a rule that allows settlement agreements to include payments or loans to non-governmental third parties who are not part of the dispute, under certain conditions. This rule revokes a 2020 regulation that prohibited such payments. Despite some public concerns about fairness and legality, the DOJ maintains this new rule will enable more effective settlements by compensating victims and addressing harms. The rule also includes guidelines such as ensuring a strong connection between the payment and the violation and restricting government involvement after the settlement.
Simple Explanation
The rule says that when people or companies settle a legal dispute, they can sometimes pay money to someone not directly involved, like community groups, to help fix things. It tries to make sure these payments are connected to what went wrong and stops the government from getting too involved afterward.