The U.S. Justice Department has temporarily halted the practice of appointing corporate monitorships to oversee companies that have settled allegations of misconduct, based on information from two anonymous sources familiar with the situation. This review, which began two weeks ago, is analyzing settlements that required firms to engage monitors to ensure compliance with settlement terms and laws.

Corporate America often criticizes monitorships as being costly and burdensome, while proponents argue they are essential for rectifying wrongdoing. The use of corporate monitors in settlements has varied under different Justice Department administrations, with former President Trump's administration reducing their use. In contrast, President Biden's administration has increased the use of monitors to address corporate misconduct, with companies like Boeing and Binance agreeing to settlements that include monitorships.

According to one insider, the Department's new leadership is skeptical about monitorships, and there may be discussions about permanently eliminating them. Companies have reportedly been urging the DOJ to remove their monitors. The DOJ declined to comment on the matter. Recently, a judge granted the Justice Department's request to end the monitorship for Glencore, the energy company that settled bribery and market manipulation charges by paying over $1 billion in 2022.