Interdisciplinary group focused on helping clients with challenges caused by recent financial turmoil – investigations-enforcement proceedings, regulatory compliance, litigation, bankruptcy, as well as investment restructuring and workouts: "whatever counsel and advocacy needed to weather the storm"
Stepping up on behalf of clients buffeted by the ongoing financial crisis, law firm Foley Hoag has formed an Economic Crisis Team, comprised of lawyers from multiple practices focused on helping companies cope with the fast-changing landscape – from internal investigations and enforcement proceedings, to increased regulatory compliance, securities and other types of litigation, bankruptcies and restructurings, as well as emergency financing and deal-making.
Foley Hoag believes clients will benefit from an organized, interdisciplinary response to the swarm of challenging new realities and risks caused by severe downturns in both the national economy and global credit markets.
"The level of dislocation and stress brought on by the extreme credit squeeze is unprecedented for so many businesses and institutions right now. We wanted to offer a coherent approach, led by some of our most senior practitioners, not only to handle live matters but to maintain an open dialogue with our clients and provide them with whatever counsel and advocacy they need to weather the storm," said Foley Hoag partner Nick Theodorou, head of the firm's Business Crimes practice and the leader of the Economic Crisis Team.
With a strong, historic base in New England, Foley Hoag has built a national client base in industries ranging from life sciences and high technology to energy and financial services, including hedge funds along with major financial institutions, insurers and accounting firms.
"It's hard to find a business that has not been touched in some way by the recent havoc in the financial markets," said Nick Theodorou. In addition to proactively engaging clients on relevant issues, the firm will continue alerts and other communications touching on specific aspects of the issues.
"We are drawing on a long tradition of immersing ourselves in our clients' businesses, with an understanding of their operations, capital needs, liability exposures, industry regulations and other facts of life that enable our lawyers to provide sound, strategic counsel over the long term," he added.
Members of the Economic Crisis Team include members of the Business Crimes and Government Investigations group, the Business Department, the Bankruptcy and Restructuring Practice, and various disciplines within the Litigation Department including securities, antitrust and corporate governance.
Said the Firm's Managing Partner, Robby Sanoff, "If ever there were a circumstance that required an integrated response from law firms, this is it. Only a coordinated approach that carefully weaves together the expertise of various practice strengths can be effective in the face of the current economic crisis."
"Foley Hoag lawyers have experience with large-scale bankruptcies, enforcement actions, busted transactions, dire capital shortfalls and other financial predicaments. The scope and confluence of the current tumult will draw upon all of that experience and requires a unified response." Mr. Sanoff noted.
The areas of concentration expected for the Economic Crisis Team are:
Financial investigations, enforcement proceedings and litigation
Foley Hoag's Business Crimes and Government Investigations Group includes a number of former federal prosecutors and experienced white collar defense lawyers who regularly represent financial service companies and their officers, directors and employees in federal and state governmental inquiries.
Members of the group have successfully represented hedge funds, audit committees, independent directors, officers and auditors in criminal and civil securities fraud investigations and related civil litigation, including revenue recognition, accounting fraud, market timing and options backdating cases.
Members of the Economic Crisis Team routinely represent clients in other complex investigations ranging from health care and government contracting fraud to sensitive public corruption and tax matters.
Federal and state securities regulation
The current crisis follows an era of unprecedented deregulation within the financial industry and unbroken reliance on free market fixes. The recent intervention by the Treasury, Federal Reserve, Securities & Exchange Commission – along with the historic federal rescue plan passed this past week – are ushering in a new period of dramatically increased regulation and government oversight. As legislators and regulators at both the federal and state levels will race to pass new laws to try to remedy the perceived problem of under-regulation, the rules will inevitably have unintended consequences because of the speed with which these laws will be drafted and passed.
Foley Hoag routinely represents clients in financial and securities disputes, which are certain to become a major priority for state and federal regulators in the aftermath of the economic turbulence.
Members of the Economic Crisis Team have extensive experience representing large accounting firms and other financial advisors that counseled businesses on investment and financial reporting decisions. These firms will likely be targeted in the near term because of their relative financial strength.
Deal-making, corporate finance and investment restructuring
Despite the deep freeze across much of the credit markets, Foley Hoag continues to help corporate clients at every stage to navigate the economic landscape, and to grow and develop their businesses.
Corporate clients rely on the firm's experience in deal-making and transactions, including private placements of debt and equity securities, financing and lending structures, joint ventures and strategic alliances, and management buyouts.
In situations where a merger, acquisition or corporate restructuring is the appropriate course, Foley Hoag lawyers counsel clients of all sizes in these transactions, often using creative and unconventional approaches to deliver maximum value to all parties.
With particular focus on sectors such as life sciences, technology and alternative energy, Foley Hoag lawyers continue to help emerging companies raise capital and advise investors on how to best deploy and safeguard their financial resources. One of the firm's chief tenets is that intellectual property assets and corporate finance transactions need to be closely aligned.
Bankruptcy, corporate reorganization and financial disputes
The firm's bankruptcy lawyers play a prominent role in counseling financial institutions, business entities, governmental agencies and fiduciaries regarding federal bankruptcy, state insolvency and creditors' rights law.
Foley Hoag has advised hedge funds, private equity firms and Fortune 500 companies on the technical rules that apply when broker-dealers declare bankruptcy. The firm's investment management attorneys frequently help clients unwind complex hedging and derivative contracts.
As in prior economic downturns, the firm expects that injured parties and governmental regulators will seek to recover market losses from investors, lenders and corporate fiduciaries. The bankruptcy group has regularly litigated the types of claims most likely to be seen arising from the current crisis, including claims for breach of fiduciary duty, equitable subordination, fraudulent conveyance and lender liability.
The Economic Crisis Team lawyers also advise corporate clients on bankruptcy and restructuring-related strategies tied to credit issues, as well as investors seeking risk management or workout advice in the management of troubled portfolio companies.
Integral to the work of the Economic Crisis Team is Foley Hoag's industry reach and influence in hedge funds, community banking and insurance.
For more information download the Foley Hoag Economic Crisis Team Datasheet(.pdf)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
