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Masterclass - Managing a "Bet the Company" Corporate Crisis or Major Internal Investigation


Level: Intermediate
Runtime: 45 minutes
Recorded Date: September 24, 2024
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Agenda

  • Managing a Corporate Crisis
  • Stakeholders & Cooperation
  • Cooperation
  • Mitigating Penalties
  • Technology
  • Internal Reports
  • Additional Practices

For NY - Difficulty Level: Both newly admitted and experienced attorneys

Description

The panel of experts highlight the critical strategies for managing corporate crises and conducting internal investigations, emphasizing the pivotal role of cybersecurity and data privacy. Key steps in crisis management include prioritizing communication with essential stakeholders, defining the scope of inquiries, and establishing clear channels for information flow while considering the legal implications during evidence gathering and timeline setting.

The discussion underscores the importance of balancing stakeholder communication with an understanding of cooperation dynamics in investigations. Specifically, proactive cooperation and self-reporting can significantly mitigate potential penalties and improve outcomes in regulatory inquiries.

In the context of cybersecurity incidents, the experts stress the necessity of having a comprehensive crisis communication plan. Regular preparedness drills and clear communication strategies are vital for effectively navigating regulatory challenges that may arise from such incidents.

Furthermore, effective internal investigations are crucial for positively influencing the SEC's perceptions of a company. These investigations should encompass a broad scope and include thorough reporting to ensure that all relevant information is presented transparently. Maintaining coordinated communication with auditors and providing regular updates from outside counsel are essential to safeguarding attorney-client privilege while managing crises effectively.

Provided By

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Panelists

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Luke Tenery

Partner
StoneTurn

Luke Tenery, a Partner with StoneTurn, brings nearly 20 years of experience helping leading organizations mitigate complex cybersecurity, data privacy and data protection risks. He applies extensive expertise in cyber investigations, threat intelligence, incident response, and information risk management to assist clients across the threat and risk continuum—from prevention to detection, mitigation through to remediation and transformation. Luke specializes in situational corporate cyber risks. He helps organizations across a range of industries align robust information security risk management with high- impact initiatives including remediation, M&A due diligence and integration, cyber cost analyses, digital transformation, and Secure Operations Center (SOC) and threat intelligence program development. Luke also assists public companies and their Boards in remediating the long-standing control issues that lead to cyber incidents. Prior to joining StoneTurn, Luke founded the global cyber practice and led the cyber response, investigations, and intelligence practice of an international consulting firm, handling a range of active and emergent cybersecurity threats. Earlier in his career, Luke rose to Deputy Cyber Practice Leader over a 15-year tenure with a global risk management and investigations firm. Luke is a certified chief information security officer (C/CISO). He has performed interim technology and information security leadership functions for his clients. Luke has also advised on cyber issues at the intersection of risk and compliance, as well as those related to financial fraud and data integrity He is a thought leader and frequent author and speaker on topics including incident response, security data analytics, incident remediation, and cybersecurity compliance in the context of payment card industry (PCI) and CFIUS compliance, among other regulatory enforcement issues.

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Brad Mroski

Partner & Managing Director
AlixPartners

Brad has over 20 years of experience in forensic accounting, auditing, consulting and litigation services, including serving for six years as Assistant Chief Accountant in the Enforcement Division of the US Securities & Exchange Commission (SEC). He leads internal investigations and has a wide range of experience with accounting and financial reporting, auditing, internal controls, corruption, corporate governance and economic related issues across a variety of industries. In addition to his investigations and compliance work, Brad is often called upon to provide expert reports and testimony in regulatory and commercial dispute matters dealing with accounting and reporting, internal controls, auditor malpractice and asset tracing. Prior to his time at the SEC, Brad was an auditor and forensic accounting specialist at a Big Four firm. Brad is a certified public accountant and certified fraud examiner who frequently speaks publicly on topics related to accounting and disclosure, internal investigations, FCPA and regulatory enforcement.

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Andrew Shoenthal

Counsel to the Regional Director (Chicago)
U.S. Securities and Exchange Commission

Andrew Shoenthal is Counsel to the Regional Director of the United States Securities Exchange Commission’s Chicago Regional Office. Andrew is responsible for advising on legal, policy, and operational issues, as well as leading, managing and coordinating national priority matters and cross-divisional initiatives. Prior to this role, Andrew spent ten years as a member of the Division of Enforcement’s specialized Asset Management Unit and served as Senior Advisor to the unit’s leadership. As an Enforcement attorney in the AMU, Andrew focused on investment adviser fraud and cases involving false performance, excessive and undisclosed fees, and conflicts of interest. He worked on the SEC's Share Class Selection Disclosure Initiative that resulted in refunds of over $125 million to investors; brought the first enforcement action using analytics to uncover hedge funds with inflated performance; and litigated some of the Commission’s earliest actions involving mutual fund share class selection, undisclosed 12b-1 fees, and brokerage mark-ups. Before working at the SEC, Andrew was an associate at the Chicago office of Sidley Austin LLP. He received his J.D. magna cum laudefrom the University of Minnesota Law School and his B.A. with honors in Public Policy from the University of Chicago.

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Rachel Copenhaver

Partner
Vedder Price

Rachel Copenhaver is a Shareholder at Vedder Price and a member of the Chambers USA-ranked Government Investigations and White Collar Defense team in the firm's Chicago office.

Ms. Copenhaver has significant experience representing clients in regulatory investigations and proceedings brought by the U.S. Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), U.S. Attorney’s office, and other federal and state agencies.

Her practice includes representing companies and individuals in government investigations, conducting internal investigations, counseling clients during regulatory examinations, and defending suits alleging directors and officers liability.

Ms. Copenhaver has successfully represented public companies, investment advisers, broker-dealers, boards of directors, accounting firms, officers, directors and individuals in matters involving alleged financial fraud, insider trading, board governance and oversight, whistleblower allegations, financial statement restatements and internal controls violations.

In addition, Ms. Copenhaver has well-rounded litigation experience on a wide variety of business disputes involving financial institutions, failed banks, breach of fiduciary duty, misappropriation of trade secrets, restrictive covenants, business torts and other commercial matters.

Ms. Copenhaver is a member of the American Bar Association and the Women’ White Collar Defense Association. Ms. Copenhaver is a co-founder and leader of Big Careers Little Kids (Big Careers Little Kids), a group connecting Chicago’s female professionals in the fields of law, finance, and business. In addition to her work on behalf of clients facing government investigations, Ms. Copenhaver demonstrates a commitment to pro bono service, most recently with her representation of asylum seekers in the United States.

Prior to joining Vedder Price, Ms. Copenhaver was a Law Clerk with the Illinois Circuit Court of Cook County for the Chambers of the Honorable Rita M. Novak.

Ms. Copenhaver has been selected for inclusion as an Illinois Rising Star by Super Lawyers from 2014 to 2022. She has also been selected as an Emerging Lawyer, an affiliate of Leading Lawyers, from 2014 to 2022. Ms. Copenhaver was named a Top Lawyer/Woman Leader in Leading Lawyers.


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