Internal Investigations

Overview

Friedman Kaplan has significant experience conducting internal investigations for corporations and other institutions on behalf of officers, boards of directors, special committees, audit committees, and outside directors or committees. Our work includes the investigation and evaluation of the underlying allegations, identifying responsibility, advising on compliance or other solutions to prevent recurrence, and representation in related external investigations or litigation.

Because of the nature of our investigations practice’s work, many of our most successful matters have not resulted in public charges and remain confidential.

Selected Experience

• We conducted an internal investigation on behalf of the Audit Committee of a NYSE-listed consumer financial services company in connection with the Committee’s review of the company’s previously issued financial statements.
• We represented a former board member of Hollinger International in connection with an internal investigation as well as civil litigation regarding disclosures that Hollinger CEO Conrad Black and other executives had collected millions of dollars in unauthorized payments.
• We represented a company in the insurance industry in connection with a confidential internal investigation into the company’s accounting practices, and as to whether it had made fraudulent representations to investors. Working with a forensic accounting firm, we conducted a six-week investigation and made a report to the company’s board detailing our findings.
• We regularly represent institutions of higher education in connection with non-public matters, internal investigations, and responding to confidential state and federal inquiries.
• We represented a former executive of a major Internet company in connection with an internal investigation into alleged improprieties in the way in which the company granted stock options, including making false representations and backdating.
• We conducted a confidential investigation on behalf of the Board of Directors of an international integrated resort and gaming development company into the performance and conduct of the company’s CEO to determine whether there was "cause" under his employment agreement for his termination.
• We represented Independent Fiduciary Services, Inc. in conducting an internal investigation on behalf of a major bank to identify the correct action the bank should take to fulfill its fiduciary duties following substantial portfolio losses in accounts for which the bank served as trustee.
• We advised a private equity fund in connection with an internal investigation into the activities of a principal of the fund. We conducted the investigation, examining various transactions and activities involving portfolio company investments, and later advised the fund with regard to related corporate governance, fiduciary duty, employment, and restructuring issues.