Dechert Leads on Three High-Profile Investigations
Dechert was chosen to lead on three of the highest-profile, yet very different, investigations matters in the U.S., UK and Europe, all of which illustrate the growing significance for businesses of investigations, both internal and external, in response to commercial and reputational issues.
Airbus’ settlement in January 2020 has been heralded as a template for future self-reporting companies in the UK and France, and brought to a close four-years of investigation into allegations of bribery, corruption and export control issues. This investigation was one of the largest and most complex cases to date, requiring the application of innovative bespoke technology and AI solutions, and the creation of a co-ordinated Virtual Law Firm (VLF) of white collar lawyers, export control practitioners, eDiscovery experts and forensic accountants. Described in the media as “playing multi-level chess,” Dechert’s assistance to Airbus showed the best of our deep expertise in dealing with enforcement agencies, our innovative approach to complex issues and our true sense of teamwork.
Dechert has since led two further significant high-profile investigations.
The regulators themselves are not immune from scrutiny. In the UK, Dechert supported Dame Elizabeth Gloster, appointed at the direction of H.M. Treasury as the independent investigator into the Financial Conduct Authority’s (FCA) regulation and oversight of failed investment company London Capital & Finance Plc (LCF). This was one of Europe’s largest financial scandals of recent times with over 11,000 retail investors potentially losing £237 million as a result of LCF’s collapse. Dame Elizabeth’s 400+ page report and recommendations, published in December 2020, shone a light on so-called “mini-bonds,” the mass-marketing of which has since been limited by regulation and also contributed to significant changes being made at the FCA under the leadership of the new CEO.
In January 2021, the Special Committee of the Apollo Global Management, Inc. Board released a report by Dechert into then chairman and CEO Leon Black’s previous professional relationship with the late Jeffrey Epstein. Dechert had been engaged by a Special Committee of the Apollo Board to conduct an independent review to evaluate the nature and extent of Black’s relationship with Epstein. It has become increasingly common, even required practice, for Boards to call for independent investigations in order to demonstrate appropriate governance and oversight.
These examples illustrate just some of the commercial, ethical and reputational hazards facing global businesses and their regulators. Increasingly, these problems result in internal and regulatory investigations tied up with fraud and other criminal proceedings, a parallel litigation threat and reputational and public relations issues. They frequently constitute the over-used concept of being “bet the company” cases. The current focus on ESG requirements will only promote more work in this area. Such work requires integrated and sophisticated handling by law firms of the highest caliber to achieve the best results and add credence to the investigation, either in advising the company or its board, or carrying out independent investigations at the board’s request.
