CID stands for “Civil Investigative Demand” and is a tool used by the U.S. federal government to gather information on possible antitrust violations, false claims and other civil violations of the law. It is similar to subpoenas used in criminal matters, but the information requested is limited to civil matters and only requires the production of documents or evidence.
CIDs are issued by the Attorney General’s office or a federal agency, and are typically sent to companies, individuals or organizations. The CID will outline the type of information sought and may also include a set deadline by which the information must be provided. Failure to comply with a CID can result in the imposition of fines, jail time or civil damages.
A CID has long been a powerful enforcement tool for the federal government. It is often used to uncover potential violations of antitrust laws or when investigating companies for violations of securities laws. For example, in 2018, the Department of Justice and the Securities and Exchange Commission used CIDs to investigate violations of the Foreign Corrupt Practices Act in the financial sector.
Today, CIDs are used to investigate a variety of civil matters and are seen as an important step in ensuring compliance with the law. For those facing a CID, it is essential to understand the implications of the instrument and to be prepared to respond in a timely manner.