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Dealing with Government Investigations

Author Richard Solomon is a Antitrust Management Counselor with four decades of experience in business development, antitrust and franchise law, management counseling and dispute resolution including trials and crisis management.


As soon as you have the first hint - no matter the source – of government interest in any activity in which your company may be engaged, you need to avail yourself of specialized antitrust representation. General business counsel are not suitable for this highly specialized area of legal practice. The risks will be high and mistakes costly. How you deal with this prospect in terms of company governance matters, public information management, customer inquiry responses, and with the investigation or case itself will be critical.

We bring all this background to bear in our representation of companies and of individuals in antitrust matters. It is important to note that one cannot assume that company employees, including officers, have identical interests as those of the company itself. Many business generalists miss the inherent conflict of interest issues that relate to advising and even interviewing company personnel. One may no longer simply take for granted that employees of long tenure have not been reached by enforcement agents or that they have not thought about deals offered to then by government agencies in exchange for their cooperation. When the government interviews company employees and officers, there is always the threat of criminal liability hanging in the air, even if not explicitly threatened. Great care must be taken in the handling of this delicate issue. If am employee has been turned by a government agent, that employee will report whatever is said to him/her by defense counsel. Confidentiality can be quickly lost.

Assessment of likely liability should a full blown case ensue must be very early on. Planning to deal with those risks is an immediate concern. Not all liability issues are clear cut and obvious.

 

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