The American Lawyer Litigation Daily awarded its “Litigators of the Week” distinction to Robert Giuffra Jr., David Rein and Nicholas Menillo for obtaining a stay on a mandamus petition for FirstEnergy in closely watched case with significant implications for corporate internal investigations conducted by law firms. The stay by the U.S. Court of Appeals for the Sixth Circuit halted a federal court order in a securities class action granting plaintiffs access to FirstEnergy’s internal investigations conducted by two other firms. The ruling threatened to undermine the attorney-client privilege and work product doctrine. Max Gottschall also played a central role in briefing the mandamus petition. This marks Bob Giuffra’s ninth “Litigator of the Week” win.
In their Q&A with the Litigation Daily, Bob, David and Nick stated that this ruling reinforces that internal investigations remain an important part of corporate governance and that courts will not allow plaintiffs to invade their protected character. The court recognized that internal investigations don’t lose their privilege because companies use the legal advice for business purposes, stressing the strong public interest in preserving the attorney-client privilege.
“If the Sixth Circuit had affirmed, the district court’s ruling would have presented serious challenges for companies responding to allegations of misconduct,” Bob told the Litigation Daily. “Companies and their boards must be able to assess those allegations and their legal risks with the help of candid and confidential advice from their counsel. Knowing that these confidential deliberations would need to be shared with litigation opponents obviously would chill that process.”
S&C’s team for FirstEnergy also includes Sharon Nelles, Beth Newton, Kamil Shields and Hilary Williams.