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Wake Up Call: Theranos Founder Charged With Defrauding Investors

June 18, 2018, 11:13 AM

• Theranos Inc. founder Elizabeth Holmes assumed the title of world’s youngest female self-made billionaire after investors bought her promises to revolutionize blood testing. Now she and former company president Ramesh “Sunny” Balwani face criminal charges of defrauding investors. ( Bloomberg ) Holmes’ lawyers include Kevin Downey of Williams & Connolly and San Francisco criminal defense attorney John Cline. Jeffrey Coopersmith at Davis Wright Tremaine represents Balwani. ( The Recorder )

• U.K. law firms look likely to get left behind by the expensive bidding war for young legal talent heating up among the biggest U.S. firms. ( Financial Times )

• Milbank sparked the latest wave of raises. Most of the 71 top in-house lawyers responding to Corporate Legal Operations Consortium’s survey about the raises expressed concern the pay bumps could increase their companies’ legal costs. But the vast majority of the consortium’s nearly 1,500 members didn’t respond to the survey. ( Corporate Counsel ) And, so far, no Washington, D.C. firms have matched. ( National Law Journal )

• Apple Inc.'s WilmerHale lawyer, William Lee, must persuade a U.S. trade judge that iPhones that contain Intel Corp. chips should be allowed into the country, even if they infringe a Qualcomm Inc. patent. Qualcomm’s lawyer is David Marriott of Cravath, Swaine & Moore. ( Bloomberg )

• Baker Botts corporate chairman Mike Bengtson moved from Austin, Texas to New York as the Texas-based firm looks to expand in Manhattan, California, and London. ( American Lawyer )

• Citibank agreed to pay $100 million to settle a fraud case that grew out of an investigation by 42 state attorneys general, headed by New York State Attorney General Barbara Underwood. ( New York Law Journal )

• Bain Capital hired litigation partner Christopher Green, co-chief of Ropes & Gray’s global private equity and hedge fund SEC enforcement and litigation group, as its next managing director and general counsel effective Sept. 1. He’ll take over from Sean Doherty, the private equity firm’s first GC and also a former Ropes & Gray lawyer, who will retire in December after 13 years. ( Boston Business Journal )

• Seattle University Law School grad, Skadden Fellowship winner, and ex-convict Tarra Simmons got sworn in as a lawyer this past weekend. She had to overcome the Washington State Bar Association’s objection to her taking the bar exam to win those credentials. ( Seattle Times )

Lawyers, Law Firms, Laterals

• Morrison & Foerster said it advised California Cryobank, the world’s leading donor sperm and egg bank, in theannouncedsale to GI Partners from healthcare investors, Longitude Capital and NovaQuest Capital. ( )

• Colombia University president-elect, pro-business lawyer Ivan Duque has an advanced degree in international legal studies from American University in Washington and a master’s in public policy from Georgetown University. ( Bloomberg )

• Toys “R” Us, which is liquidating in bankruptcy, found a New Jersey children’s hospital willing to take the 16-foot tall Geoffrey the Giraffe statue from its headquarters lobby. Ken Rosen, chair of the bankruptcy department at law firm Lowenstein Sandler, along with a few others, helped find the new home. The law firm represented some vendors that were creditors to Toys “R” Us. ( Bloomberg )

• Nonprofit news organization ProPublica said it hired Ballard Spahr litigator Jeremy Kutner, a former First Amendment Fellow at The New York Times, as deputy general counsel. He’ll start July 30. ( ProPublica )

Legal Actions

• American Airlines Group Inc. agreed to pay $45 million to end a consumer antitrust suit that accused it and three other major U.S. airlines of colluding to limit plane capacity and drive up domestic airfares. ( Bloomberg )

• The federal ruling that opened the way for AT&T Inc. to close its $85 billion takeover of Time Warner Inc. last week leaves several big unanswered questions. ( Bloomberg Law )

• U.S. prosecutors reconstructed the contents of a shredding machine to produce 16 pages of documents that were part of the material seized from President Donald Trump’s former attorney Michael Cohen. ( Bloomberg )


• The European Union’s new privacy regulation is sending compliance shockwaves through the U.S. health-care sector. That, of course, means higher costs. ( Bloomberg Law )

Legal Education

• Charlotte School of Law’s closure in 2017 has resulted in hundreds of its students filing suits against the school in state and federal court. Some have sued individually, others have joined a class action. ( Washington Post )

Compiled by Rick Mitchell and edited by Tom Taylor.