CONDUCTING AN EFFECTIVE AND EFFICIENT INTERNAL INVESTIGATION

R&C: Could you provide an overview of why it may be necessary to launch an internal investigation? Are you observing any recurring themes in the current market?

Richdale: Launching an internal investigation requires careful consideration and is often instituted when a company uncovers facts that could lead to civil or criminal liability because of the actions of an employee, director or officer of the company. The ways that a company can uncover these facts are virtually limitless, but often come to light because of whistleblower complaints, government investigations or findings of an external auditor. The onset of the coronavirus (COVID-19) pandemic saw an unprecedented shift in work patterns and habits, leading to an even greater threat of employee malfeasance and potential reputational crises facing multinational brand owners. The pace of change in this area has continued unabated in 2024. The emergence and increasing role of artificial intelligence (AI) and the need to protect intellectual property (IP) assets in everyday business has highlighted the importance of strengthening internal controls and implementing solid policies and procedures, including the use of effective internal investigations. We expect to see this continue as an area of focus for internal investigations arising from theft, misuse or improper dissemination of key corporate assets.

Apr-Jun 2024 Issue

Cozen O’Connor

Covington & Burling LLP

Gibson, Dunn & Crutcher

Mayer Brown

Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates

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