Crisis Management

S&C’s expertise in handling complex, multiparty cases is well-known. Our Firm has guided clients through a diverse range of crises:

Digital Assets

• FTX: In one of the most complex bankruptcies and financial investigations ever, S&C is leading efforts at FTX, as chapter 11 debtor, to investigate the events that led to the company’s collapse, assist government authorities in their probes and organize hundreds of potential litigations to recover assets.
• S&C is representing a top U.S. cryptocurrency exchange platform in litigations brought by the SEC and numerous state securities proceedings variously charging that the company is operating an unregistered securities exchange, broker dealer, and clearing firm and offering crypto staking services that are unregistered securities.

Diesel Emissions

• Fiat Chrysler Automobiles: As lead counsel, S&C successfully represented Fiat Chrysler Automobiles in multidistrict litigation and investigations over alleged excess emissions from approximately 100,000 diesel vehicles. After two years of litigation, S&C secured final court approval for a comprehensive settlement with U.S. owners and lessees, the Environmental Protection Agency, the California Air Resources Board, the state attorneys general of all 50 states, and U.S. Customs and Border Protection.
• Volkswagen: S&C serves as National Coordinating Counsel to Volkswagen AG in the investigations, multidistrict litigation and crisis management matters arising from the revelations of its diesel emissions-related compliance issues in September 2015. Since the beginning of 2016, S&C has worked to eliminate VW’s exposure through settlements related to its 2.0L and 3.0L diesel vehicles with 44 states and the District of Columbia; federal regulators including the DOJ, EPA, FTC and California Air Resources Board; private plaintiffs; a class of Volkswagen dealers; and various state attorneys general not part of the global settlement.

Environmental Disasters

• BHP: S&C is advising BHP Billiton on matters relating to a dam break in the Samarco iron mine in Brazil, in which BHP Brasil is a 50 percent shareholder, including in two securities litigations in the United States, one of which was dismissed in S.D.N.Y., a dismissal that was affirmed on appeal in the 2nd circuit, and one that reached a favorable settlement in August 2018.
• BP plc:
• S&C represented BP in negotiating a global settlement with government authorities in the United States over the Deepwater Horizon oil spill in the Gulf of Mexico. The settlement structure provided BP with liquidity and the ability to return its focus to its core business. It further established a framework for U.S. global resolutions of all federal, state and local government environmental and economic damage claims. The Wall Street Journal noted that “the agreement would avert years of litigation” and that investors “celebrated the deal, sending BP’s shares up 5.1% in U.S. trading.”
• S&C is serving as national coordinating counsel in litigation and investigations arising out of the February 2021 winter storm in Texas, including advising BP in the U.S. and Mexico on consumer protection act and contract disputes, state attorney general investigations, and swaps and derivatives issues.

Financial Services Investigations & Litigation

• Allianz: In one of the largest corporate criminal cases ever, S&C helped Allianz SE’s U.S. subsidiary, Allianz Global Investors U.S., reach a swift $5.8 billion global settlement with the DOJ and SEC, as well as private plaintiffs. In his press conference, SEC Enforcement Director Grewal compared the scope of this case to Enron and WorldCom. Allianz SE’s shares rose nearly 2% with the deal’s announcement.
• BNP Paribas (BNPP): One of the largest banks in the world, BNPP, turned to S&C in a high-profile, complex, ongoing sanctions investigation involving its core business. S&C represented BNPP in a complex negotiation, quickly structuring a settlement that minimized the fallout and permitted BNPP to return its focus to its core business. The Financial Times noted “the limited fallout.”
• JPMorgan:
• S&C represented JPMorgan Chase connection with matters relating to the so-called London Whale trading losses, including with actions taken to hold certain executives accountable and with respect to corporate governance matters. S&C achieved the dismissal of several derivative actions arising out of the trading losses, a number of which have been affirmed on appeal.
• As lead counsel to JPMorgan, S&C obtained landmark resolutions with the Department of Justice, the Commodity Futures Trading Commission, and the Securities and Exchange Commission, resolving multi-year investigations into alleged “spoofing” by JPMorgan traders in the precious metals and U.S. treasuries markets, and manipulation of precious metals barrier options.
• Wells Fargo: S&C served as the lead law firm representing Wells Fargo in resolving high-profile government probes targeting Wells Fargo's "fake account" sales practices, guiding the bank through criminal, regulatory and civil investigations by multiple federal and state authorities and defending the bank in related civil suits.

White Collar Defense & Criminal Investigations

• Bank Hapoalim: S&C represented Bank Hapoalim in an investigation by the United States Department of Justice, Federal Reserve, and New York Department of Financial Services concerning money laundering in connection with alleged corruption in connection with international soccer confederations and competitions. In April 2020, the bank entered into a non-prosecution agreement, ending the investigation. The resolution documents praised the Bank’s exemplary cooperation with the DOJ’s investigation following its change of counsel and engagement of S&C.
• Fiat Chrysler Automobiles: S&C obtained the dismissal with prejudice, affirmed on appeal by the Sixth Circuit, of a high-profile lawsuit brought by General Motors in the Eastern District of Michigan against Fiat Chrysler Automobiles in which GM sought billions of dollars in damages.
• FirstEnergy Corp.: S&C represented FirstEnergy, one of the nation’s largest electricity distributors, in securing a global resolution of a criminal investigation by the Ohio Organized Crime Investigations Commission (OCIC) and a civil action brought by the Office of the Ohio Attorney General (OAG), both stemming from a public corruption scandal regarding improper political contributions to obtain favorable legislation.
• Goldman Sachs: S&C was lead counsel to Goldman Sachs in reaching coordinated resolutions in multiple criminal and regulatory investigations in jurisdictions around the world relating to a multi-billion dollar money laundering and corruption scheme involving the Malaysian sovereign development company, 1MDB, and senior public officials in Malaysia and the United Arab Emirates, including a deferred prosecution agreement with the DOJ and resolutions with the government of Malaysia, the SEC, Federal Reserve, New York DFS, and regulators in the UK, Hong Kong and Singapore.

Product Liability Litigation

• Kidde-Fenwal: Carrier Global subsidiary Kidde-Fenwal, Inc. retained S&C to represent it in multi-district litigation (“MDL”) proceedings in the United States District Court for the District of South Carolina. The actions consolidated into the MDL arise out of the manufacture and sale of Aqueous Film Forming Foam (“AFFF”), a fire suppressant used to control flammable liquid fires. The plaintiffs’ claims against Kidde-Fenwal and other defendants allege that AFFF products were a source of per- and polyfluoroalkyl substances, allegedly toxic contaminants that are found in environments around the United States. S&C is also advising Carrier on corporate strategic considerations regarding the management of any potential liabilities arising from the litigation.
• Koninklijke Philips N.V.: S&C is representing Koninklijke Philips N.V. and a number of its affiliates (“Philips”) in a multifaceted crisis related to the June 2021 recall of certain of their CPAP, Bi‐Level PAP, and mechanical ventilator devices, which has allegedly led to a $15 billion decline in Philips’ market value over the last several months. To date, Plaintiffs have filed more than 150 consumer class actions and personal injury lawsuits, as well as shareholder class action litigation, in connection with the recall.

National Opioids Crisis

• Walgreens Boots Alliance: S&C is representing Walgreens Boots Alliance in appellate litigation arising out of a bellwether case in the national opioid multidistrict litigation, in which two Ohio counties allege that the pharmacy contributed to a public nuisance by distributing and selling opioids.

Global Dispute Resolution

• Centerra Gold: S&C guided Canadian gold mining company Centerra Gold in its extraordinary settlement with the Kyrgyz Republic and its state-owned gold refining company, Kyrgyzaltyn OJSC, among others, over the government’s expropriation of the company’s Kumtor mine. All legal proceedings including the civil and criminal proceedings in the Kyrgyz Republic, a UNCITRAL arbitration, Chapter 11 proceedings and Ontario court proceedings were terminated with no admissions of liability. In The Wall Street Journal’s coverage of the settlement, Centerra’s CEO Scott Perry stated: “This arrangement is expected to provide value to Centerra’s stakeholders while allowing Centerra to move forward with a renewed focus on our core operations.”