Covington law firm says SEC demand for client names ‘assault’ | – #Covington #law #firm #SEC #demand #client #names #assault
Feb 14 (Reuters) – Law firm Covington & Burling said on Tuesday USA It responded to the Securities and Exchange Commission’s lawsuit and the agency’s 2020in , claiming that the firm had overstepped its bounds by requiring it to identify customers affected by a cyberattack.
Covington said the SEC’s subpoena for the names of nearly 300 publicly traded companies whose data was accessed or stolen in the hack threatens to expose confidential client information that the firm is supposed to protect.
“The SEC’s effort to compel Covington to help the agency investigate the firm’s clients, without any evidence from Covington or those clients, attorney– is an attack on the sanctity and privacy of the client relationship,” Covington told Washington. , federal court looks after work.
The SEC sued Covington last month over potential securities hacking of the powerful DC-based firm law forced to identify customers as part of an investigation into its violations. The agency said the hack was carried out by the Hafnium cyber-espionage group linked to China.
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The SEC argued that its subpoena was narrow in scope and attorney-does not search for information covered by client privilege. He said his request is necessary to determine whether the hack resulted in insider trading and whether companies made all required disclosures to investors about the breach.
Covington accused the SEC of engaging in a “fishing expedition” and forcing the firm to hand over information that could lead to investigations of its clients without proof of wrongdoing.
The firm pointed to legal ethics rules that require law firms to maintain the confidence of their clients and protect potentially embarrassing information.
It said the SEC’s request could chill cooperation between law firms and the government in the wake of future cyberattacks and create “cascading dilemmas” for firms torn between reporting breaches and protecting their clients.
Covington’s legal team at Gibson, Dunn & Crutcher, 2020-year hackinin, coming Biden said he was targeting a small group of lawyers and advisers to gather information about his administration’s China policies.
Covington said it is working with the FBI to investigate the cyberattack and is notifying all customers whose data may have been compromised.
In the case of Securities and Exchange Commission v. Covington and Burling, USA District Court for the District of Columbia, No. 23-mc-00002
For the SEC: SEC Dean Conway
For Covington: Kevin Rosen of Gibson, Dunn & Crutcher
Reporting by Andrew Goudsward
Our standards: Thomson Reuters Trust Principles.
2023-02-15 04:14:14
Source – reuters
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