DoJ Changes 2 Guidance Policies: Attorneys
Attorneys Anne Walsh and JP Ellison (Hyman, Phelps & McNamara) say the Department of Justice (DoJ) “quietly” changed the role of guidance documents by reversing two Trump administration policies on such documents. Writing in their firm’s FDA Law Blog, Walsh and Ellison say the first policy, from 2017, prohibited department components from issuing guidance documents that purport to create rights or obligations binding on persons or entities outside the federal government’s executive branch.
The second policy, known as the Brand Memo (written in 2018 by then-associate attorney general Rachel Brand) prohibited department lawyers from civilly prosecuting companies for violating “requirements” outlined in guidances.
Walsh and Ellison say a 7/1 memo signed by attorney general Merrick Garland said the policies were “overly restrictive” and hampered department attorneys when litigating cases where there is relevant agency guidance. Garland says department attorneys handling an enforcement action may rely on relevant guidances in instances when a guidance “may be entitled to deference or otherwise carry persuasive weight with respect to the meaning of the applicable legal requirements.”
Walsh and Ellison say that “in light of the seemingly renewed general focus on enforcement activities after a Covid-19 lull, regulated companies should anticipate the resumption of FDA inspections. In preparation, companies should consider whether new guidance documents have been issued that ‘require’ changes in business practices and documentation. Additionally, on the government investigation front, companies should expect that DoJ lawyers assessing potential False Claims Act cases based on alleged Federal Food, Drug, and Cosmetic Act violations, are reading FDA guidance documents with renewed vigor and contemplating how to use those guidance documents in their cases, which routinely result in multi-million dollar settlement demands.”