November 02, 2011

In this issue of The Spotlight, we highlight a number of interesting developments relating to, among other things, the area of White Collar Defense & Investigations. For example, we report on a Department of Labor administrative ruling finding that disclosure of a whistleblower’s identity can give rise to a cause of action under Sarbanes-Oxley. We also note that a court imposed the longest FCPA prison sentence to date (15 years) on a former executive who was found guilty of FCPA violations and money laundering – a sentence which is more than twice the length of the next longest such sentence ever imposed. Additionally, in Attorney-Client Privilege, we discuss a decision holding that a Title VII defendant waives privilege over its internal investigation when it invokes a Faragher-Ellerth defense based on the results of that investigation.

In Securities Litigation, we report on a district court opinion rejecting a "neither admit nor deny" settlement between the SEC and Citigroup, which calls into question the SEC’s long-standing practice of allowing a defendant to settle charges without admitting wrongdoing.

In Complex Commercial Litigation, we address two decisions vacating multi-million dollar jury verdicts: one because the trial judge failed to properly investigate claims of jury taint, and another because the court found it was improper for the jury to award lost-profit damages where the underlying purchase contract never closed. Also, in Electronic Discovery, we highlight a ruling requiring a company to preserve its hard drives while litigation is pending, notwithstanding that the price tag for doing so is in excess of $1.5 million.

We further report on several holdings involving issues of statutory interpretation, including a ruling that consumer claims under the Magnunson-Moss Warranty Act are not subject to compulsory arbitration (Arbitration), and a decision finding that parens patriae actions do not fall within CAFA’s definition of class actions (Class Action).

We wish all of you a happy and healthy holiday season.

David J. Bradford and Craig C. Martin
Co-Chairs Jenner & Block Litigation Department

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