The New York Times reports that the Justice Dept. is rolling back its bullying tactic of penalizing companies that reimburse their employees’ legal fees during investigations and trials. This move is mostly show–to make the feds seem reasonable and open to suggestions. But it is really just a reaction to the department’s defeat in today’s KPMG case (pdf) and a lame attempt to stave off legislation that would be more meaningful and permanent.

Attorney Richard Janis details these issues in this new Cato report.

For still more background, go here, here, and here.