Risk Update

Ex-Client Conflicts Clash, Client Files in the Garbage Can

Weil, Ex-Client Clash Over Possible Conflicts in Insys Work” —

  • “A former sales executive at Insys Therapeutics who is seeking a new trial after a racketeering conviction has cited new evidence that he said shows his ex-lawyers at Weil, Gotshal & Manges kept him in the dark about potential conflicts posed by its simultaneous bankruptcy work for Insys.”
  • “‘Weil could not be loyal to both clients. Mr. Simon never provided his informed, written consent to this arrangement. Worse, when he asked his trial counsel, Weil partner Steven Tyrrell, what the Insys engagement would mean for him, Tyrrell responded, ‘nothing, really,’’ said Simon’s defense attorneys Daniel Marx and William Fick.”
  • “But Weil denies that there was any conflict, said it took steps to avert the possibility of one and said Simon was fully informed about its work for Insys. Tyrrell said in an affidavit filed Sept. 16 that he told Simon about the pending bankruptcy representation in August 2018, and ‘Simon stated he understood my explanation, had no questions, and voiced no objection.'”
  • “Tyrrell also said Weil implemented an ethical screen ‘to avoid any appearance of impropriety,’ according to a Weil memo filed in court. He said his firm circulated memos to the team working on Simon’s defense and on the Insys bankruptcy that instructed them not to have any discussions or share or access any files concerning each others’ matters.”

Personal medical files discovered unshredded and dumped at landfill” —

  • “Dozens of file boxes packed with private, confidential medical information were dumped at a Bay Area landfill, angering people whose names, addresses, medical history and prescription drug information was on display for anyone to see.”
  • “That’s when she called 2 Investigates, which traced the files to a San Francisco law firm, Leach & McGreevy LLP and called the group for comment. Attorney Rick McGreevy said ‘nothing was being (improperly) disclosed’ and ‘most people don’t go digging around at the dump.'”
  • “That comment didn’t sit well with UC Hastings legal ethics professor and attorney Richard Zitrin. ‘I just go ouch. It makes me flinch,” Zitrin said. “Somebody’s not stopping to think it through.'”
  • “California law details that lawyers are required to protect the privacy of their clients and any state resident. Additionally, a California ethics opinion says an attorney should shred, erase or modify personal information to be sure it can’t be seen by others.”
  • “The California State Bar said it is considering sending a warning letter to all member attorneys reminding them documents must be destroyed and not simply tossed in the garbage can.”
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