Page 6 - American College of Trial Lawyers Federal Criminal Procedure Committee 2020 Update: Recommended Practices for Companies and Their Counsel in Conducting Internal Investigations

TABLE OF CONTENTS

I. PURPOSE OF THE PAPER ...................................................................................................... 1
II. INITIAL ORGANIZATIONAL ISSUES .................................................................................. 1
A. Factors to Consider When Evaluating Whether to Commence an Internal
Investigation When Significant Corporate Malfeasance Has Been Alleged or When an
Independent Auditor Suspects Illegality .................................................................................... 1

B. External Factors, Such as the Existence or Anticipated Existence of a Parallel
Government Investigation or Shareholder Lawsuit, Should Be Considered When Making
Decisions about How to Conduct and Document an Internal Investigation ..............................2
C. The Role of the Board and Management in Conducting and Overseeing the
Investigation...............................................................................................................................8
D. Independent Outside Counsel Should Be Retained to Conduct Internal Investigations
of High-Level or Sensitive Alleged Misconduct .......................................................................9

E. The Independent Committee and Investigatory Counsel Should Determine the
Appropriate Scope of the Inquiry and the Rules of the Road ..................................................10

F. Communications to and Indemnification of Company Employees ............................12
G. Joint Defense Agreements ..........................................................................................14
III. CREATING AN ACCURATE FACTUAL RECORD: DOCUMENT REVIEW AND
WITNESS INTERVIEWS ....................................................................................................... 16
A. Mechanics of a Litigation Hold .................................................................................. 16
B. Document Collection and Review .............................................................................. 17
C. Witness Interviews ......................................................................................................18

IV. DEVELOPING A RECORD OF THE INVESTIGATION .....................................................22
V. POST-INVESTIGATION USE OF INTERNAL-INVESTIGATION DOCUMENTS
AND WORK PRODUCT IN GOVERNMENT INVESTIGATIONS AND CIVIL
LITIGATION ........................................................................................................................... 23
A. Role of Investigatory Counsel in Follow-on Investigations and Civil Litigation .....24
B. Use of Investigatory Counsel’s Work Product ............................................................24

VI. ISSUES IN CROSS-BORDER INTERNAL INVESTIGATIONS .........................................24
A. Attorney-Client Privilege ............................................................................................ 25
B. Data Privacy and the GDPR ....................................................................................... 25
C. Employee Rights and Labor Laws .............................................................................. 27
D. Culture and Language Barriers ................................................................................... 27

E. FCPA and Other Bribery Issues ..................................................................................28
VII. RECOMMENDATIONS .........................................................................................................28