deferred prosecution agreement (DPA)

A deferred prosecution agreement (DPA) is an agreement between the government and a defendant in which the government pauses prosecution against the defendant while the defendant is fulfilling specified requirements. Generally, the government, like a prosecutor or the SEC, will file charges against the defendant and request to postpone action against the defendant. The pause is to allow the defendant to demonstrate good conduct per the terms of the DPA. Common deferred prosecution agreement actions include paying fines, admitting to relevant facts, and cooperating with government agencies. If the actions are complete and all other conditions of the DPA are met, then the charges against the defendant will be dropped. If the defendant fails to fulfil their duties under the agreement, the prosecution will resume the case against them. DPAs are commonly used for corporate crimes because they allow the government to ensure a correction of wrongdoing without potentially injuring innocent third parties during litigation.

Deferred prosecution agreements (DPAs) are different from non-prosecution agreements (NPAs) because the latter can only occur prior to charges being filed while DPAs are created after charges are filed, but before a trial. Additionally, deferred prosecution agreements usually require court approval, unlike non-prosecution agreements. DPAs are also different from plea bargains because plea bargains require a guilty plea in exchange for a lesser sentence after conviction, while DPAs avoid conviction altogether. 

See e.g.: United States v. America Online, Inc. (AOL), (2004) and United States of America v. Comunicaciones Celulares S.A., d/b/a Tigo Guatemala, (2025).

For additional information see this University of Chicago Business Law Review article, Deferred Prosecution Agreements in Antitrust Enforcement: An Efficient Alternative to Pleas.

[Last reviewed in April of 2026 by the Wex Definitions Team]

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