Federal Judge Acquits In-House Lawyer of Charges of Lying to Government
A federal district court granted a motion acquitting an in-house lawyer accused by federal prosecutors of obstructing a federal investigation and making false statements. The lawyer represented a large pharmaceutical company in an FDA investigation. The court opined that the lawyer acted in good faith and not to further any underlying crime because she relied in good faith on other external and internal lawyers. She had been engaged by her employer/client to respond to information requests from the government. The court stressed the importance of allowing a lawyer to zealously represent his/her clients and the attorney-client privilege.
OUR TAKE: We believe this decision will become a seminal case concerning an in-house lawyer’s liability when representing his/her employer/client before a regulatory agency. When confronted with a concern, lawyers should obtain and document advice from both other in-house lawyers and outside counsel in order to rely on the good faith defense. Although this case involved lawyers and the attorney-client privilege, it would seem that the same good faith defense should apply to compliance officers relying on the advice of counsel.
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