I assume most of you have been following the spectacular collapse of FTX, the cryptocurrency exchange that was once worth $34 billion and is now worth less than the coins in the cushions of your couch, with theft, fraud, and a host of other felonies thrown in for good measure. If you’re like me, you probably had this reaction: “What the f**k happened here?!” If you are a regulator or law enforcement, you might also be thinking (among many other things): “Where were the lawyers, and what did they do to stop this?” Sadly, these are now common questions as expectations regarding the responsibilities of in-house counsel to spot and stop corporate malfeasance have changed dramatically over the past two decades. These expectations (and new laws) are driving more in-house counsel to look for ways to beef up their role as the “watchdogs” of the company, on the prowl for trouble and wrongdoing – and one clear way to show the value of the legal function. It’s not an easy task, however. It’s can be fraught with risk and conflicting loyalties. And it often seems like the in-house lawyers are bringing a water gun to a knife fight, i.e., they need more help. Warren Zevon said it best way back in 1978:
“Send lawyers, guns, and money. The shit has hit the fan!”
The problem for lawyers is that guns and money may not be enough (though they certainly help, especially the money bit). They need a plan and a process for how best to identify problems and what to do if they uncover (or suspect they have uncovered) serious wrongdoing. This edition of “Ten Things” walks you through a plan for doing just that:
Ten Things You Need to Know as In-House Counsel® 