Plea agreements and settlements compared

Last checked: 22 October 2026 · How resolutions work

A plea agreement leads to a criminal conviction once the court accepts the plea, and the court must find a factual basis for a guilty plea ¹. A civil settlement resolves a money claim and is not a conviction. A Justice Department release on one such settlement says the claims are allegations only and there has been no determination of liability ². A deferred prosecution agreement sits between the two, with prosecution deferred under court-approved terms ^3,4.

Plea rule: Federal Rule of Criminal Procedure 11 ¹
Pleas available: Not guilty, guilty, or with the court's consent nolo contendere ¹
Factual basis: Required before judgment on a guilty plea ¹
DOJ plea policy: Justice Manual 9-27.400 to 9-27.450 ⁵
Plea evidence rule: Federal Rule of Evidence 410 ⁶
Settlement evidence rule: Federal Rule of Evidence 408 ⁷

Side by side

Feature	Guilty plea	Deferred prosecution agreement	Civil settlement
Conviction ^1,4	Yes, once judgment is entered ¹	No, prosecution is deferred ³	No ²
Main rule ¹	Rule 11, court may accept or reject the plea agreement ¹	18 U.S.C. 3161(h)(2), deferral with court approval ³	Rule 408 governs use of settlement talks as evidence ⁷
Facts ¹	Court must find a factual basis ¹	Can include facts admitted in court documents ⁸	Release can say allegations only ²
Example wording ^8,2	Defendant pleads guilty to a charge ¹	"As Boeing admitted in court documents" ⁸	"no determination of liability" ²

How federal plea agreements work

Rule 11 says a defendant may plead not guilty, guilty, or, with the court's consent, nolo contendere ¹. Before accepting a nolo contendere plea, the court must consider the parties' views and the public interest ¹.

The rule names three kinds of plea agreement terms ¹.

The government agrees not to bring, or to move to dismiss, other charges ¹.
The government recommends a sentence or agrees not to oppose the defendant's request, but this "does not bind the court" ¹.
The parties agree a specific sentence, which "binds the court once the court accepts the plea agreement" ¹.

Justice Department plea policy

Justice Manual 9-27.400 says "Plea agreements should reflect the totality of a defendant's conduct" ⁵. It says charges "are not to be bargained away or dropped in ways that represent a significant departure from the principles set forth herein" ⁵.

The manual says the government should not enter into a plea agreement with a defendant who admits guilt but disputes a required element of the offense, except as provided in Justice Manual 9-27.440 ⁵. It says "particular care should be exercised" before agreeing to a nolo contendere plea ⁵. For Alford or nolo contendere pleas, it says the attorney for the government may wish to make a stronger factual showing ⁵.

How settlements differ

A civil settlement resolves a claim for money. In a 24 January 2025 release on a False Claims Act settlement of US$59,746,277, the Justice Department wrote: "The claims resolved by the settlement are allegations only and there has been no determination of liability." ²

Federal Rule of Evidence 408 bars use of settlement offers and settlement talks to prove or disprove the validity or amount of a disputed claim ⁷. Rule 410 bars use against the defendant of a withdrawn guilty plea, a nolo contendere plea, and statements in plea discussions that did not end in a guilty plea ⁶.

Where corporate agreements fit

For companies, the Justice Manual says non-prosecution and deferred prosecution agreements "occupy an important middle ground" between declining prosecution and securing a conviction ⁴. A company can be charged by criminal information and resolve the charge through a DPA. The Boeing DPA of 7 January 2021 followed that path, with one count of conspiracy to defraud the United States ⁸.

When writing about any of these resolutions, say exactly what the document says. Do not call a settlement a finding of guilt. Do not call an admitted statement of facts or a guilty plea allegations only ^2,8.

Common questions

Is a plea deal the same as a settlement?

No. A guilty plea leads to a conviction once the court enters judgment and requires a factual basis ¹. A civil settlement is not a conviction ².

Is a judge bound by a plea agreement?

Only for an agreed specific sentence, and only once the court accepts the agreement. A sentence recommendation does not bind the court ¹.

What is a nolo contendere plea?

A plea of no contest that needs the court's consent under Rule 11 ¹. Under Rule 410 it is not admissible against the defendant who made it ⁶.

Is a deferred prosecution agreement a plea?

No. Prosecution is deferred under a written agreement with court approval ³.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email hello@settlementsexplained.org with the official link.

Sources

What a government settlement means
What civil settlements, DPAs, NPAs, plea agreements and SEC orders say about admission of liability or guilt, with the rules that govern each.
Deferred and non-prosecution agreements explained
How U.S. deferred prosecution agreements and non-prosecution agreements work for companies, the Justice Manual factors, and what the company admits.
False Claims Act settlements explained
How the U.S. False Claims Act works, treble damages, qui tam whistleblower suits, relator shares, and what a DOJ FCA settlement says about liability.
FCPA resolutions explained
How U.S. Foreign Corrupt Practices Act cases end: declinations, NPAs, DPAs, guilty pleas and SEC actions, with the statute, penalties and DOJ policy.