The Recorder digs up this lawsuit by McAfee against WilmerHale for "fraud, theft, negligence and breach of fiduciary duty" for billing $12 million to defend their Chief Financial Officer in his accounting fraud case (he was convicted).

Here’s the claim:

"[WilmerHale] intentionally overworked and churned the representation of Goyal; shamelessly employing over 100 WilmerHale timekeepers

I spotted this intriguing entry with regard to the Bear Stearns indictment and the duty of corporate counsel to employees:

[Defendant Tannin] raised the issue of whether to approach a lawyer regarding his doubts about the market. “Who do we talk to about this?” wrote Tannin in an e-mail, sent from his private account, to co-defendant Ralph Cioffi. “Outside counsel? (And here we have to be careful because our outside counsel is [Bear Stearns Asset Management’s counsel] NOT our counsel — This is another very big issue we at least need to think about.)”

He was right — if he had talked to Bear Stearns’ lawyer, they would not have told him what was in his best interest. They would have told him what was in the best interest of the company. More below the fold.

Continue Reading “In-House Counsel” Represents the Company, Not the Workers