Covington & Burling’s dispute with the Securities and Exchange Commission over regulators’ access to client information has implications for the sanctity of attorney-client relationships, according to white-collar lawyers contacted for this report.
The SEC sued the firm early this week, demanding that it comply with a subpoena for the identities of 298 clients whose information was reported to have been breached during a 2020 cyberattack. Regulators say they are investigating the possibility of insider trading or other securities violations that resulted from the 2020 breach, not necessarily involving the firm’s clients.
If the regulatory body succeeds in compelling the firm to hand over the client names, that decision may set a precedent guiding future litigation involving government investigations.
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