American lawyers have welcomed a ruling that a company's decision to waive lawyer-client privilege will no longer be required to receive sentencing 'credit' for co-operating with government investigations.

The US Sentencing Commission has rescinded the 2004 rule following public hearings and pressure from a range of legal and business bodies, such as the American Bar Association (ABA), American Civil Liberties Union, and National Association of Manufacturers.


ABA president Michael Greco said the decision 'advanced the cause of justice and of corporate governance in the public interest'. The range of organisations against the original rule showed 'the shared concern about the government's recent policies to diminish it', he continued.


Mr Greco called on the Department of Justice to review a similar policy it has to force corporate waiver of privilege in its investigations of suspected wrongdoing.


The sentencing commission's rule will become effective on 1 November if it is not disapproved by the US Congress.