W.R. Grace, Former Executives Acquitted in Mont. Asbestos Case

"The United States has committed discovery violations in this case, which it has acknowledged," the government said in a court filing.

David Uhlmann, former chief of the Justice Department's environmental crimes section who now teaches at the University of Michigan, said he respected the jury's verdict but was disappointed by the limits the judge imposed on the prosecution.

"So much of the last three and a half months has been dominated not by the lawyers for the government or the defense, but by the district court and its rulings," said Uhlmann, who approved the indictment against Grace when he worked in the federal government. "That's the story within the story here. . . . The verdict is a fair reflection of the evidence that jurors were allowed to hear. But the question that hangs over this case is what would have happened if the government were allowed to present all of the evidence that it had amassed in this multi-year investigation.

"In the aftermath of the Ted Stevens dismissal, any errors by prosecutors, particularly when it involves discovery violations, become a big deal," Uhlmann added.

New Justice Department leaders have moved swiftly to address problems with evidence sharing in criminal cases.

In a speech yesterday, Deputy Attorney General David W. Ogden said he was "examining from top to bottom our practices with regard to criminal and civil discovery."

Officials have already deployed a team of senior prosecutors to review it and recommend improvements.

Staff researcher Madonna Lebling contributed to this report.