|  | | 2007 News and Press Releases | | |
HEADLINE NEWS:
U.S. House Adopts Attorney-Client Protection Act
Brendan Pierson
Securities Law360. November 15, 2007
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EXCERPT: The U.S. House of Representatives voted on Tuesday to approve a bill that would bar federal prosecutors from asking companies under investigation for antitrust violations or fraud to waive their attorney-client privilege. A similar bill awaits a vote in the Senate. Advocates of the bill have said that prosecutors with the U.S. Department of Justice pressure corporations to waive their attorney-client privilege by threatening that refusal to waive the privilege could hurt them. If the bill is passed, prosecutors could not ask corporations to waive the privilege. Corporations would be considered to be cooperating with authorities even if they kept all of their information privileged. Two attorneys who testified in support of the bill's Senate counterpart before the Senate Judiciary Committee said they were pleased with the vote. "I thought it was a step in the right direction," said Andrew Weissman, a partner at Jenner & Block LLP. He added that it would be better to reform the DOJ without legislation, but thought the bill was necessary. "It's a very positive development," said Dick Thornburgh, a former U.S. attorney general and currently an attorney at Kirkpatrick & Lockhart Preston Gates Ellis LLP. The bill also enjoys support from advocacy groups, including the American Business Association. The House voted to approve the bill in a voice vote, according to published reports. Despite the bill's bipartisan support, some observers have been skeptical. “I'm not sure what [the bill] is setting out to accomplish,” said Daniel Richman, a professor at Columbia Law School who testified about a similar bill before the Senate Judiciary Committee earlier this year. “I do think it's a troubling move that I hope gets blocked in the Senate.” Richman said that while the bill was likely motivated by “good faith concern” that the federal prosecutors have abused their authority in antitrust and securities fraud investigations, he said that “those concerns are being addressed substantially in the Justice Department.” He said that the bill, if passed, would likely make it more difficult to prosecute corporate crime, while allowing corporations to throw up expensive roadblocks for government investigators by making unnecessary motions, even when the government has not committed any abuse. “It's fixing a problem that doesn't exist,” said Michael Siegel, a professor at the University of Florida Law School. “In my view, the issue of privilege is one that has been blown way out of proportion by business interests.” Siegel testified at the same committee hearing that Richman testified at. |
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