Legal troubles experienced by attorneys and law firms have inundated 2023’s news landscape. From the fall of the crypto exchange FTX to high-stakes showdowns in Washington, the following nine law firms and individual lawyers found themselves entangled in some of the year’s most significant legal controversies:
1. Fenwick & West, a Silicon Valley-based firm, was scrutinized over its links to Samuel Bankman-Fried and FTX. The once-main law firm for FTX is now among the several third-party advisors to deal with a class-action lawsuit following the crypto exchange’s collapse. Accused of enabling fraud at FTX, the firm now faces subpoenas from federal prosecutors. Fenwick’s defense centers upon its claim to have provided “routine” legal services, unaware of FTX’s internal affairs [1].
2. Daniel Friedberg, former chief compliance officer for FTX, has been sued under allegations of enabling fraud within the crypto exchange, as well as establishing a shell company to sidestep banks’ hesitation to collaborate with crypto companies [2].
3. Dechert, under enduring scrutiny due to the actions of ex-partner Neil Gerrard, allegedly assisting a hacking scheme, has been tied to at least six legal proceedings [3].
4. Covington & Burling, after a cyberattack potentially revealed client information, incurred a lawsuit from the SEC, who argued that the names of the affected clients could aid an ongoing investigation into violations of securities laws [4].
5. Wigdor LLP faced billionaire Leon Black’s latest lawsuit. Representing three women accusing Black of sexual assault, the firm has been charged with malicious prosecution [5].
6. Paul Hastings was targeted by Coca-Cola Co. over ‘”advance conflict-of-interest waivers” enforcement – an agreement commonly carried out by large law firms when accepting client work [6].
7. Proskauer Rose settled a lawsuit with a former client over a $636 million claim concerning legal document errors [7].
8. & 9. Both Covington and ArentFox Schiff were implicated in a case assembled by Elliott Broidy, a past influential fundraiser for former President Donald Trump. Currently, both firms are allegedly aiding in evidence concealment regarding a claimed Qatari-sponsored plot to hack and tarnish Broidy [8].
Rounding off this list, these case examples remind us that even attorneys are no strangers to legal complications. The consequences of these cases are still unfolding and warrant close monitoring.