Biglaw

Federal Prosecutors Are Thinking About Going After Skadden

The Biglaw firm is under fire for its work on behalf of Paul Manafort.

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The work that Skadden Arps did for Paul Manafort on behalf of the Ukrainian government — specifically, writing a report justifying the prosecution of former Russian-aligned Ukrainian President Viktor Yanukovych’s political rivals — has long been in the spotlight, what with it being a featured part of the Mueller investigation’s case against Manafort. In addition to being well-known, it has also triggered a series of legal woes for Skadden attorneys that worked on the matter.

Former Skadden associate Alex van der Zwaan pleaded guilty to lying to investigators in the Mueller probe. And the case against former Skadden counsel Greg Craig was referred to the Southern District of New York for potentially acting as an unregistered lobbyist.

Recent reports have revealed not only that Craig, who was unceremoniously purged from the Biglaw firm’s website when the pressure from the investigation got turned up, is in the crosshairs of the S.D.N.Y. for work he did, but now we’ve learned that Skadden Arps Meagher and Flom — the white shoe law firm itself — may be facing penalties for its representation.

As CNN reports:

In addition, these sources said, prosecutors in the US Attorney’s Office for the Southern District of New York are considering taking action against powerhouse law firm Skadden, Arps, Slate, Meagher & Flom LLP, where Craig was a partner during the activity under examination. Prosecutors are considering a civil settlement with the firm or a deferred prosecution agreement with Skadden, these sources said.

But those who love a good dose of Biglaw schadenfreude shouldn’t get too excited yet. There’s not yet been a final decision to take any action against the firm or Craig himself:

Prosecutors at the US attorney’s office have notified the Department of Justice of the options under consideration, the sources familiar with the matter said. Prosecutors, however, haven’t concluded that they have adequate evidence to bring the possible charges, these sources said, and as a result haven’t made a determination about whether to proceed.

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Through an attorney, Craig has denied he was required to register as a foreign lobbyist, and Skadden has not commented on the matter:

An attorney for Craig, who left the Skadden firm in April and who was White House counsel under President Barack Obama during the first year of that administration, said his client “was not required to register under the Foreign Agent Registration Act.” A spokeswoman for Skadden didn’t respond to a request for comment.

Meanwhile, the rest of us wait with bated breath to see if any action will be taken against the Biglaw goliath.

headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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