As corporations are doing more with less, a major issue affecting in-house legal departments is the rise of the number of internal investigations conducted each year. Although many of these investigations stem from private litigation, there has been an increase in the number of governmental agency audits and investigations into regulatory and compliance practices in the areas of labor and employment, health care, financial services, and matters involving whistleblower, anti-trust and fraud allegations.
While conducting internal investigations is nothing new to general counsel and their legal departments, the ability to successfully preserve attorney-client privilege has become more challenging, given that the courts have historically scrutinized corporations when ascertaining whether the privilege exists, especially when it is common for most in-house counsel to also hold executive positions within the corporation.
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