In a time of greater accountability, companies and individuals in many industries are experiencing increased scrutiny from state and federal prosecutors, regulatory agencies, self-regulatory organizations, shareholders and investors.  Investment banks have been criticized for biased analyst coverage.  Mutual fund advisers have entered into settlements concerning late trading, market timing and other activities.  Pharmaceutical companies are under investigation for alleged off-label promotion of prescription drugs, for alleged failures to disclose the results of clinical studies, and for alleged kickbacks to health care providers.  Insurance brokerage houses are under attack for alleged failures to reveal to clients compensation paid to carriers.  Music industry executives are being questioned about payments made to promoters or to radio stations as promotional support for their records.  And in every industry, questions about compliance need to be answered, and procedures instituted to prevent future liability.

Because of our proven success in handling these tough issues, clients, including Fortune 500 and major foreign companies as well as large law firms, call on Patterson Belknap to conduct sensitive investigations that have been critical in preventing or halting potential criminal and civil problems in their organizations.  Corporations and individuals also rely on us for representation in criminal and civil cases involving investigations by state and federal prosecutorial and regulatory agencies throughout the United States.  They know that because we have worked both in-house and in the government, we understand the needs of our clients and how investigations can affect every aspect of a company’s business.

First-Hand Knowledge of Enforcement Strategies 

Peter Harvey, a past Attorney General of the State of New Jersey and the first African-American to have held that position, is active on our team.  A former federal prosecutor, Peter has been a central player in government investigations, securities regulation and consumer fraud matters.  A gifted trial lawyer, Peter has more than 20 years of courtroom experience. His understanding of government and business, from both sides of the table, provides clients with a real advantage in litigation and investigatory matters.  He continues to be hooked into issues upon which state attorneys generals are focused through his close relationships nationwide and his participation in SAGE, the association of past attorneys general affiliated with NAAG (National Association of Attorneys General). Peter works closely with Daniel Ruzumna, the former acting head of the Southern District’s Major Crimes Unit. 

In addition, a number of our attorneys have served as prosecutors in the Southern District of New York and the District of New Jersey, gaining valuable insight into the workings of these important offices.  The experience these attorneys bring to the table provides our clients with first-hand knowledge of enforcement strategies and also results in enhanced credibility with courts, prosecutors and regulatory agencies.  We appreciate the seriousness of the issues our clients face, and we understand how investigators and prosecutors evaluate cases.  Our professional background allows us to meet with government investigators in an atmosphere of trust that can expedite resolution of the inquiry.

Managing Internal Corporate Investigations

We are sensitive to the disruption an investigation can bring to corporate operations, in part because of our direct relevant experience.  For example, one member of our team has represented corporations and corporate executives in many recent high-profile criminal and regulatory investigations involving alleged violations of the securities laws, antitrust laws, and Foreign Corrupt Practices Act.  For leading corporations across many industries, Patterson Belknap has handled sensitive investigations involving high-stakes matters.  We have helped companies determine the truth behind allegations of improprieties and establish new procedures and rules to bring the companies into compliance with applicable regulations.

Anticipating and Handling Results of Internal Investigations

In every matter, our attorneys remain fully aware of how statements to federal prosecutors and investigators can have larger ramifications for state investigations and civil class actions.  We focus not only on the current inquiries, but also on any potential investigations and lawsuits.  The investigations may be the consequence of private litigation (e.g., qui tam) and, when made public, often result in the filing of private class actions.  Our broad litigation experience positions us well to anticipate issues that may arise in those suits and to litigate those actions as they arise.  We also work with clients to implement controls and procedures to prevent recurrence of the issues that gave rise to suit.

Representative Matters

• Pursuant to SEC decree, appointed as the Independent Compliance Consultant to two major mutual fund advisers.
  
  
• Representation of major music company in connection with payola investigation being conducted by the New York Attorney General.
  
  
• Representation of insurance brokerage firm in connection with New York Attorney General’s investigation of contingent commissions and other compensation received from insurance carriers.
  
  
• Representation of former CFO of Fortune 500 company charged with accounting fraud.
  
  
• Represented manufacturer of popular prescription dermatological product in connection with one of the earliest high profile FDA and DOJ investigations of off-label promotion issues and obstruction of justice allegations.
  
  
• Represented manufacturer of blood glucose meter in connection with criminal and civil health care fraud allegations arising from whistleblower's claim that company knowingly marketed flawed device.
  
  
• Represented blood products supplier in connection with grand jury subpoenas.
  
  
• Represented manufacturer of leading prescription anti-epilepsy drug in connection with investigation by DOJ of off-label promotion and anti-kickback issues.
  
  
• Represented manufacturer of prescription antipsychotic drug in connection with investigation by DOJ of anti-kickback and off-label promotion issues.
  
  
• Defended major medical device company in an antitrust investigation brought by the FTC.  Following document discovery and depositions, the investigation was terminated with no prosecution.
  
  
• Represented executives of major pharmaceutical company under investigation for "channel stuffing" and improper handling of accounting reserves. 
  
  
• Represented major pharmaceutical company in connection with New York Attorney General’s investigation of disclosure of clinical study results. 
  
  
• Advised pharmaceutical companies concerning responses to Congressional inquiries related to federal reimbursement programs.