Risk Update

Conflicts Allegations — Simultaneous Representation, Judicial Nomination

Posted Dan Bressler

“Arnold & Porter Accused Of Conflicts In Mallinckrodt Ch. 11” —

  • “Parties with antitrust claims against bankrupt drugmaker Mallinckrodt and mail order pharmacy Express Scripts are asking a Delaware district court to remove Arnold & Porter as special counsel in the Mallinckrodt Chapter 11 case for alleged conflicts of interest… the plaintiffs in the antitrust case said they intend to argue the law firm is simultaneously representing Express Scripts, creating an ‘irreconcilable conflict of interest.'”
  • “A proposed antitrust class action was filed in April 2017, contending that Mallinckrodt’s predecessor Questcor was able to jack up the price of Acthar through various practices, including a 2007 agreement with Express Scripts that made it the sole supplier of the hormone treatment. Mallinckrodt bought Questcor for $5.9 billion in 2014, and the complaint contends little has changed under Mallinckrodt’s watch, with the drug’s price ultimately being raised 1,300%.”
  • “Arnold & Porter has been serving as Mallinckrodt’s counsel in connection with the Acthar cases, and last month the plaintiffs in the cases filed an appeal with the U.S. District Court for the District of Delaware of the bankruptcy court’s order allowing Mallinckrodt to retain the firm.”
  • “In the papers, the plaintiffs say they intend to argue Arnold & Porter failed to make a full disclosure in its retention application and was simultaneously representing Express Scripts, creating a conflict of interest.”

“New York Gov. Andrew Cuomo’s Office Hires Outside Lawyers For Sex-Harassment Probe” —

  • “New York Gov. Andrew Cuomo’s office has hired outside lawyers to represent his Executive Chamber in an investigation into accusations that the governor acted inappropriately to aides in the workplace.”
  • “The lawyers are Paul Fishman, a former U.S. Attorney in New Jersey, and Mitra Hormozi, who worked for Mr. Cuomo when he was state attorney general, according to a statement from the law firm Arnold & Porter. Mr. Fishman is a partner at the firm.”
  • “Davis Polk & Wardwell LLP will assist the chamber’s judiciary committee in examining Mr. Cuomo’s conduct, Assembly Speaker Carl Heastie said.
  • “Mr. Heastie said that the Davis Polk team would include Angela Burgess, Greg Andres and Martine Beamon. They will work with Assemblyman Charles Lavine, a Democrat from Long Island who chairs the chamber’s judiciary committee.”
  • “One of Mr. Cuomo’s accusers, 25-year-old former aide Charlotte Bennett, has said that the governor asked her about her sex life during a meeting in his office in June. Later that month, Ms. Mogul spoke to Ms. Bennett after she complained about Mr. Cuomo’s behavior…In a statement, Ms. Bennett’s attorney Debra S. Katz said she was alarmed at the selection of Davis Polk for the impeachment inquiry.”
  • “Ms. Katz said the law firm’s hiring represented a conflict of interest because Dennis Glazer, who was a longtime partner in the firm before he left in 2012, is the husband of New York State Court of Appeals Chief Judge Janet DiFiore, who was appointed by the governor.”
  • “A spokesman for Judge DiFiore said she had no connection to the firm or any involvement in its selection.”