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Associate
Yoav Gaffney
Associate
Yoav Gaffney
Yoav Gaffney is an Associate focused on litigation and dispute resolution.
Practice Areas
EXPERIENCE
Yoav counsels private equity firms, their portfolio companies and other enterprises on all aspects of complex disputes and controversies, including domestic and cross border deal litigation, securities and shareholder litigation, antitrust litigation, regulatory enforcement actions and other complex commercial litigation across a wide range of industries, including financial services, consumer products, technology and healthcare, among others.
Yoav works closely with clients to craft litigation strategies that advance their business objectives, combining practical judgment, creative problem-solving and meticulous attention to detail to navigate high-stakes disputes. He has represented clients across all phases of litigation in state and federal courts, arbitrations, and hearings before federal agencies, including pre-filing investigation and case assessment, fact and expert discovery, motion practice, trial and appeals.
Prior to joining Massumi + Consoli, Yoav practiced at Paul, Weiss, Rifkind, Wharton & Garrison.
EDUCATION
- The George Washington University Law School, J.D., with High Honors, Order of the Coif
- University of Michigan, B.A.
BAR ADMISSIONS
- New York
COURTS
- U.S. Court of Appeals for the Seventh Circuit
- U.S. District Court for the Eastern District of New York
- U.S. District Court for the Southern District of New York
News & Insights
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02.26.26
Attorney-Client Privilege in AI Conversations: What Companies, Executives and Investors Need to Know
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rities%2C+thereby+removing+any+reasonable+expectation+of+confidentiality%2C+even+with+respect+to+information+Heppner+had+originally+received+from+counsel.+Third%2C+Heppner+did+not+communicate+with+Claude+to+obtain+legal+advice%3B+although+Heppner+later+forwarded+the+documents+to+his+counsel%2C+that+did+not+retroactively+protect+them+from+disclosure.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+Court+also+rejected+Heppner%E2%80%99s+work+product+claim.+The+work+product+doctrine+protects+materials+prepared+by+or+at+the+direction+of+counsel+in+anticipation+of+litigation.+Here%2C+Heppner+prepared+the+AI+documents+of+his+own+volition%2C+and+although+Heppner+had+input+information+he+received+from+counsel%2C+the+documents+did+not+reflect+counsel%E2%80%99s+strategy+at+the+time+Heppner+generated+them.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cem%3E%3Cu%3EGilbarco%3C%2Fu%3E%3C%2Fem%3E%3C%2Fstrong%3E%3Cstrong%3E%3Cu%3E%3A+Work+Product+Protection+Applies%3C%2Fu%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EOn+February+10%2C+2026%2C+Magistrate+Judge+Patti+held+that+Warner%E2%80%99s+exchanges+with+ChatGPT+were+protected+by+the+work+product+doctrine.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+Court+explained+that+Warner%2C+who+was+self-represented%2C+was+using+ChatGPT+to+prepare+legal+filings+and+that+her+exchanges+reflected+her+legal+strategy.+Moreover%2C+disclosure+to+ChatGPT+had+not+waived+the+protection%3A+the+court+explained+that+work+product+protection+%26%238220%3Bis+waived+only+when+documents+are+used+in+a+manner+contrary+to+the+doctrine%26%238217%3Bs+purpose%2C%26%238221%3B+specifically+by+disclosure+%26%238220%3B%3Cem%3Eto+an+adversary%3C%2Fem%3E+or+in+a+way+likely+to+get+in+an+adversary%26%238217%3Bs+hand.%26%238221%3B+According+to+the+Court%2C+generative+AI+tools+%26%238220%3Bare+%3Cem%3Etools%2C+not+persons%3C%2Fem%3E%2C+even+if+they+may+have+administrators+somewhere+in+the+background%2C%26%238221%3B+and+regardless%2C+Warner%E2%80%99s+disclosure+to+ChatGPT+was+not+likely+to+result+in+disclosure+to+Gilbarco+in+ordinary+circumstances.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%3Cu%3EReconciling+the+Two+Decisions%3C%2Fu%3E%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EAlthough+the+two+cases+reach+different+outcomes%2C+they+are+not+necessarily+inconsistent.+The+%3Cem%3Epro+se+%3C%2Fem%3Efooting+in+%3Cem%3EGilbarco+%3C%2Fem%3Emeaningfully+shaped+the+analysis%3A+because+the+plaintiff+represented+herself%2C+her+AI+exchanges+reflected+her+own+mental+processes+and+case+strategy.+By+contrast%2C+the+%3Cem%3EHeppner+%3C%2Fem%3Ecourt+emphasized+that+Heppner%E2%80%99s+exchanges+did+%3Cu%3Enot%3C%2Fu%3E+reflect+his+counsel%E2%80%99s+strategy+and+the+AI+platform+Heppner+used+permitted+disclosure+to+the+government%E2%80%94Heppner%E2%80%99s+actual+adversary.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EImplications+for+Companies%2C+Executives%2C+and+Investors%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3ECompanies%2C+executives%2C+and+investors+increasingly+use+AI+to+support+core+workflows%2C+including+legal%3A+negotiating+agreements%2C+managing+compliance+matters%2C+assessing+potential+risks+and+liabilities%2C+responding+to+regulatory+inquiries+and+preparing+for+litigation.%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThese+decisions+carry+several+key+lessons.+First%2C+using+generative+AI+in+legal+workflows+should+be+limited+to+platforms+with+strong+confidentiality+protections%2C+typically+enterprise+deployments.+The+ruling+in+%3Cem%3EHeppner%3C%2Fem%3E%C2%A0is+limited+to+AI+platforms+whose+terms+permit+data+collection+and+third-party+disclosure%2C+including+government+authorities.+Second%2C+AI-generated+material+intended+for+use+in+litigation+should+be+prepared+at+counsel%E2%80%99s+direction.+Heppner%E2%80%99s+decision+to+act+independently+was+fatal+to+his+attorney-client+privilege+and+work+product+claims%3B+represented+parties+should+ensure+AI+use+occurs+within+the+attorney-client+relationship.+Third%2C+the+law+continues+to+evolve.+%3Cem%3EHeppner+%3C%2Fem%3Eattracted+significant+attention%2C+but+%3Cem%3EGilbarco+%3C%2Fem%3Eshows+courts+may+take+different+approaches+to+different+sets+of+facts.+Accordingly%2C+businesses+should+monitor+developments+and+consult+counsel+when+developing+AI+policies%E2%80%94and%2C+while+the+law+develops%2C+we+recommend+adopting+a+cautious+approach.+Consider+at+least+the+following+steps%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EPractical+Steps+for+Companies%2C+Executives+and+Investors+for+Using+AI+in+Legal+Workflows%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Col%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EKeep+privileged+materials+out+of+AI+platforms.%3C%2Fstrong%3E+Do+not+input+legal+documents+or+memos%2C+attorney+emails%2C+or+counsel%26%238217%3Bs+advice+into+non-enterprise+AI+platforms.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EUse+enterprise+AI+with+meaningful+protections.%3C%2Fstrong%3E+Review+privacy+policies+for+data+sharing%2C+training+use+and+disclosure+to+authorities%2C+and+require+contractual+commitments+prohibiting+training+on+user+data+and+third-party+disclosure.+Merely+toggling+off+AI+training+options+is+helpful+but+may+not+be+adequate.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EUse+consumer-facing+AI+tools+sparingly.%3C%2Fstrong%3E+Treat+non-enterprise+AI+as+a+third+party.+Anything+you+input+and+any+output+you+receive+may+be+produced+in+litigation+or+in+response+to+regulatory+inquiries.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EBan+AI+notetakers+from+privileged+meetings.%3C%2Fstrong%3E+Do+not+use+AI+transcription+on+calls+with+counsel+or+internal+discussions+of+legal+advice.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EInvolve+counsel+early.%3C%2Fstrong%3E+When+disputes%2C+investigations%2C+or+regulatory+matters+arise%2C+use+of+AI+should+only+be+at+counsel%26%238217%3Bs+direction%E2%80%94not+independently+undertaken%E2%80%94to+preserve+attorney-client+privilege+and+work+product+protection.%3C%2Fspan%3E%3C%2Fli%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETrain+broadly.%3C%2Fstrong%3E+AI+policies+should+reach+board+members%2C+executives+and+employees%2C+not+just+in-house+counsel.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Fol%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3E%3Cstrong%3EConclusion%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EGenerative+AI+is+transforming+how+companies+and+investors+operate.+%3Cem%3EHeppner%3C%2Fem%3E+and+%3Cem%3EGilbarco+%3C%2Fem%3Edemonstrate+that+longstanding+legal+doctrines+continue+to+apply+to+new+technologies+and+that+privilege+and+work+product+determinations+will+often+turn+on+fact-specific+considerations.+These+decisions+do+not+mean+businesses+should+stop+using+AI.+But+businesses+should+be+smart+and+intentional+in+how+they+use+AI%2C+with+special+attention+paid+when+legal+issues+are+involved.%3C%2Fspan%3E%3C%2Fp%3E%0A02.11.26DOJ Fraud Section Year in Review 2025: What Private Equity Sponsors and Their Portfolio Companies Should Know
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s%2C+with+alleged+losses+exceeding+%2414.6+billion.%C2%A0+The+report+states+that+ongoing+health+care+fraud+enforcement+priorities+include%3A+protecting+the+public+fisc+through+seizure+and+forfeiture%3B+targeting+foreign+actors%3B+addressing+addiction+rehabilitation+fraud%3B+tackling+prescription+drug+abuse%3B+and+pursuing+corporate+enforcement.+%C2%A0Health+care+sectors+with+specific+enforcement+initiatives+include+wound+care%2C+digital+health+technology%2C+substance+abuse+treatment+providers+and+telemedicine+providers.+%C2%A0Additionally%2C+an+NPA+with+Troy+Health%2C+Inc.%2C+a+Medicare+Advantage+plan+accused+of+enrolling+beneficiaries+without+their+consent%2C+shows+continued+interest+in+Medicare+Advantage+fraud.+%C2%A0In+2025%2C+the+HCF+Unit+seized+more+than+%24568+million+in+assets%2C+the+Centers+for+Medicare+and+Medicaid+Services+%28CMS%29+prevented+more+than+%244+billion+in+fraudulent+payments%2C+and+CMS+suspended+the+billing+privileges+of+205+providers.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EHealth+and+Safety+Enforcement.%3C%2Fstrong%3E+The+newly+formed+Health+and+Safety+Unit+%28HSU%29+focuses+on+ensuring+products+distributed+to+consumers+meet+legal+obligations.+The+HSU+criminally+enforces+the+Federal+Food%2C+Drug%2C+and+Cosmetic+Act+%28FDCA%29%2C+pursuing+offenses+involving+food%2C+prescription+medications%2C+counterfeit+pills%2C+medical+devices%2C+dietary+supplements%2C+and+tobacco.%C2%A0+The+HSU+also+brings+criminal+enforcement+actions+under+the+Consumer+Product+Safety+Act+and+the+Federal+Hazardous+Substances+Act%2C+targeting+dangerous+products+and+the+knowing+failure+by+companies+or+individuals+to+report+defects+or+hazards+presenting+unreasonable+risk+of+death+or+injury+to+consumers.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EMarket%2C+Government%2C+and+Consumer+Fraud.%3C%2Fstrong%3E+The+Market%2C+Government%2C+and+Consumer+Fraud+%28MGC%29+Unit+prosecutes%3A+%281%29+fraud+and+manipulation+harming+U.S.+markets+and+investors%3B+%282%29+schemes+to+defraud+government+programs%2C+evade+tariffs%2C+and+procure+government+contracts+fraudulently%3B+and+%283%29+complex+consumer+fraud+targeting+Americans.+In+2025%2C+the+MGC+Unit+expanded+its+mandate+through+integration+of+the+former+Consumer+Protection+Branch%2C+adding+over+20+consumer+fraud+prosecutors.%C2%A0+Priority+areas+include%3A+securities+fraud+schemes+involving+foreign+issuers+and+variable+interest+entities+%28VIEs%29%3B+trade+and+tariff+fraud%3B+procurement+fraud%3B+and+consumer+investment+scams.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETrade+Fraud+Task+Force.%3C%2Fstrong%3E+The+MGC+Unit+is+now+part+of+the+cross-agency+Trade+Fraud+Task+Force%2C+which+pursues+enforcement+actions+against+parties+who+seek+to+evade+tariffs+and+other+duties%2C+as+well+as+smugglers+importing+prohibited+goods.+The+MGC+Unit+brought+its+first+corporate+and+individual+trade+fraud+case+in+2025.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EIII.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+What+This+Means+for+Private+Equity+Sponsors+and+Portfolio+Companies%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+2025+Year+in+Review+offers+several+practical+takeaways+for+private+equity+sponsors+and+their+portfolio+companies%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECorporate+Liability+and+Indictments%3C%2Fstrong%3E.+One+notable+development+is+the+Fraud+Section%E2%80%99s+renewed+willingness+to+indict+corporate+entities%2C+as+evidenced+by+the+first+corporate+indictments+in+over+15+years.+This+marks+a+departure+from+the+Section%E2%80%99s+traditional+exclusive+reliance+on+Deferred+Prosecution+Agreements+%28DPAs%29+and+Non-Prosecution+Agreements+%28NPAs%29.+%C2%A0This+is+a+shift+worth+noting%3A+the+DOJ+appears+more+willing+to+bring+criminal+charges+against+companies%2C+not+just+individuals%2C+in+appropriate+circumstances.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EIndustry-Specific+Considerations%3C%2Fstrong%3E.+Portfolio+companies+in+certain+sectors+may+want+to+pay+particular+attention+to+these+developments%3A%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EHealthcare%3C%2Fstrong%3E%3A+The+HCF+Unit%E2%80%99s+active+enforcement+year+is+particularly+relevant+for+healthcare+portfolio+companies.+In+addition+to+the+June+Takedown%2C+the+Unit+indicted+two+corporate+defendants+and+resolved+allegations+with+two+others+in+2025%E2%80%94its+first+such+resolutions+in+nearly+a+decade.+Portfolio+companies+providing+skilled+nursing+facilities%2C+telemedicine%2C+durable+medical+equipment%2C+addiction+treatment%2C+pharmaceutical+distribution%2C+Medicare+Advantage+plans+or+services%2C+and+wound+care+may+see+continued+attention.+%C2%A0The+prosecution+of+KBWB+Operations+LLC+%28Atrium+Health+and+Senior+Living%29%2C+which+operated+23+skilled+nursing+facilities+and+resulted+in+a+guilty+plea%2C+%24146+million+in+restitution%2C+and+%248.4+million+in+forfeiture%2C+provides+a+concrete+example+of+the+types+of+cases+the+DOJ+is+pursuing.+%C2%A0An+HCF+Data+Fusion+Center+is+being+created+to+leverage+cloud+computing%2C+artificial+intelligence%2C+and+advanced+analytics+to+identify+emerging+healthcare+fraud+schemes.+%C2%A0The+ability+to+readily+analyze+billing+trends+within+a+subsector+may+be+of+particular+concern+to+investors+in+provider+sectors+that+bill+federal+health+care+programs+%28e.g.%2C+Medicare+and+Medicaid%29.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ELife+Sciences+and+Medical+Devices%3C%2Fstrong%3E%3A+The+Kimberly-Clark+Corporation+resolution+illustrates+the+DOJ%26%238217%3Bs+continued+attention+to+medical+device+companies.+Kimberly-Clark+entered+a+DPA+and+agreed+to+pay+up+to+%2440.4+million+to+resolve+charges+stemming+from+the+sale+of+adulterated+surgical+gowns+that+failed+to+meet+required+fluid-resistance+standards.%C2%A0+The+Aesculap+Implant+Systems+NPA+involving+forged+FDA+documents+and+the+illegal+introduction+of+medical+devices+into+interstate+commerce+is+another+corporate+example+in+this+space.+%C2%A0As+in+healthcare%2C+the+DOJ+also+pursued+individual+violators+in+this+space+in+2025.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EConsumer+Products+and+Manufacturing%3C%2Fstrong%3E%3A+The+integration+of+the+Consumer+Protection+Branch+into+the+Fraud+Section+expands+enforcement+capacity+for+violations+involving+consumer+product+safety%2C+hazardous+substances%2C+and+import+fraud.+The+HSU+will+pursue+companies+that+fail+to+report+defects+or+hazards+posing+unreasonable+risk+of+death+or+injury.%C2%A0+The+prosecution+of+Royal+Sovereign+for+fire+hazard+defects+in+dehumidifiers+and+failure+to+report+those+hazards+is+a+useful+case+study+for+companies+thinking+about+product+safety+compliance.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EInternational+Operations%3C%2Fstrong%3E%3A+Portfolio+companies+with+international+operations%2C+particularly+those+doing+business+with+or+through+foreign+governments%2C+will+want+to+keep+FCPA+compliance+top+of+mind.+The+TIGO+Guatemala+resolution%E2%80%94in+which+the+telecommunications+company+agreed+to+pay+over+%24118+million+in+connection+with+bribery+of+Guatemalan+government+officials%E2%80%94demonstrates+that+subsidiaries+of+international+companies+remain+enforcement+targets.%C2%A0+The+Liberty+Mutual+declination+shows+that+voluntary+self-disclosure%2C+full+cooperation%2C+and+timely+remediation+may+result+in+favorable+outcomes.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EGovernment+Contractors%3C%2Fstrong%3E%3A+Portfolio+companies+with+federal+contracts+should+be+aware+of+continued+procurement+fraud+enforcement.+The+Vistant+and+Apprio+corporate+resolutions%2C+arising+from+a+decade-long+bribery+scheme+involving+a+USAID+contracting+officer+and+over+%24550+million+in+prime+contracts%2C+highlight+the+importance+of+robust+controls+in+this+area.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECompliance+Program+Expectations%3C%2Fstrong%3E.+The+DOJ%E2%80%99s+Corporate+Enforcement+and+Compliance+%28CEC%29+Unit+has+responsibility+for+evaluating+corporate+compliance+programs+and+determining+whether+independent+compliance+monitors+should+be+imposed.+Last+updated+in+September+2024%2C+the+Evaluation+of+Corporate+Compliance+Programs+Guidance+%28ECCP%29+sets+forth+three+fundamental+questions+for+prosecutors%3A+%28i%29+is+the+corporation%26%238217%3Bs+compliance+program+well+designed%3F+%28ii%29+is+the+program+adequately+resourced+and+empowered+to+function+effectively%3F+and+%28iii%29+does+the+corporation%26%238217%3Bs+compliance+program+work+in+practice%3F%C2%A0+These+questions+offer+a+helpful+framework+for+sponsors+conducting+portfolio+company+reviews+and+for+GCs+and+compliance+teams+assessing+their+own+programs.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EVoluntary+Self-Disclosure+Benefits%3C%2Fstrong%3E.+The+Corporate+Enforcement+Policy+%28CEP%29+provides+significant+benefits+for+companies+that+voluntarily+self-disclose+misconduct.+In+2025%2C+the+Department+revised+the+CEP+to+describe+the+path+to+a+declination+based+on+a+timely+voluntary+self-disclosure%2C+cooperation%2C+and+remediation.+The+Liberty+Mutual+declination+illustrates+these+benefits%3A+the+company+voluntarily+self-disclosed+FCPA+violations+involving+bribes+totaling+approximately+%241.47+million+to+Indian+government+officials%2C+fully+cooperated%2C+conducted+a+thorough+root-cause+analysis%2C+separated+personnel+involved%2C+and+made+significant+compliance+improvements%E2%80%94resulting+in+a+declination+with+only+disgorgement+of+%244%2C699%2C088+rather+than+criminal+charges.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECompensation+Clawbacks+and+Incentives%3C%2Fstrong%3E.+The+Pilot+Program+on+Compensation+Incentives+and+Clawbacks+requires+companies+entering+criminal+resolutions+to+implement+and+report+on+compliance-related+criteria+in+their+compensation+and+bonus+systems+during+the+resolution+term.+This+program+also+allows+for+possible+fine+reductions+based+on+corporate+efforts+to+recoup+compensation+from+culpable+employees.%C2%A0+Private+equity+sponsors+may+want+to+discuss+these+requirements+with+compensation+committees+and+HR+leadership+at+portfolio+companies%2C+particularly+when+structuring+management+incentive+plans%2C+as+the+program+demonstrates+the+DOJ%E2%80%99s+continued+focus+on+individual+accountability.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EIndividual+Accountability%3C%2Fstrong%3E.+The+Pilot+Program+on+Voluntary+Self-Disclosures+for+Individuals%2C+launched+in+April+2024%2C+details+circumstances+in+which+the+Department+will+offer+non-prosecution+agreements+to+individuals+who+voluntarily+disclose+original+information+about+certain+criminal+conduct+involving+corporations%2C+fully+cooperate%2C+and+pay+applicable+restitution+or+disgorgement.+This+program+is+worth+understanding%2C+as+it+may+encourage+employees+with+knowledge+of+misconduct+to+come+forward.+%C2%A0Strong+internal+reporting+channels+can+help+ensure+issues+are+identified+and+addressed+internally+first.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3E%C2%A0%3C%2Fstrong%3E%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EMonitor+and+Reporting+Obligations%3C%2Fstrong%3E.+The+DOJ+reported+39+active+resolutions+with+Fraud+Section-imposed+reporting+obligations+in+2025%2C+with+33+corporate+entities+under+self-reporting+requirements+and+6+under+independent+monitorships.+The+May+2025+Revised+Memorandum+on+Selection+of+Monitors+clarified+factors+prosecutors+must+consider+when+determining+whether+a+monitor+is+appropriate+and+how+to+tailor+the+scope+of+a+monitor%26%238217%3Bs+review.%C2%A0+For+companies+that+do+find+themselves+in+a+resolution%2C+these+ongoing+obligations+are+worth+factoring+into+planning.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EIV.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+Practical+Considerations+Going+Forward%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EGiven+these+developments%2C+private+equity+sponsors+and+portfolio+company+senior+management+teams+may+want+to+consider%3A%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EPre-Acquisition+Due+Diligence%3C%2Fstrong%3E.+For+private+equity+sponsors+evaluating+potential+investments%2C+the+DOJ%E2%80%99s+enforcement+priorities+provide+useful+guidance+in+evaluating+investment+decisions+and+shaping+due+diligence+protocols+around+potential+compliance+risks.+Particular+focus+should+be+placed+on+compliance+with+the+FCPA%2C+trade+sanctions%2C+health+care+fraud+and+abuse+laws%2C+FDA+regulations%2C+consumer+product+safety+requirements%2C+and+tariff+obligations.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EPortfolio+Company+Compliance+Assessments%3C%2Fstrong%3E.+Private+equity+sponsors+may+want+to+consider+conducting+periodic+compliance+assessments+across+their+portfolio.+The+ECCP+framework+offers+a+useful+benchmark+for+these+reviews+as+well+as+for+GCs+looking+to+assess+the+strength+of+their+programs.%C2%A0+This+assessment+should+include+evaluation+of+program+design%2C+adequacy+of+resources+and+empowerment%2C+and+real-world+effectiveness.+%C2%A0Special+attention+should+be+paid+to+companies+operating+in+the+priority+enforcement+areas+identified+in+the+2025+report%3A+health+care%2C+life+sciences%2C+consumer+products%2C+government+contracting%2C+and+businesses+with+international+operations.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EVoluntary+Self-Disclosure+Assessment+and+Readiness%3C%2Fstrong%3E.+The+revised+CEP%E2%80%99s+emphasis+on+voluntary+self-disclosure+as+the+path+to+declination+is+worth+understanding%2C+particularly+for+companies+thinking+about+how+they+would+respond+if+potential+misconduct+were+identified.+Companies+benefit+from+having+clear+internal+reporting+mechanisms%2C+investigation+protocols%2C+and+decision+frameworks+for+evaluating+whether+voluntary+self-disclosure+is+appropriate+when+potential+misconduct+is+identified.+%C2%A0The+Liberty+Mutual+outcome+demonstrates+the+benefits+of+timely+disclosure%2C+full+cooperation%2C+and+appropriate+remediation.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ECompensation+and+Clawback+Provisions%3C%2Fstrong%3E.+The+DOJ%E2%80%99s+Pilot+Program+on+Compensation+Incentives+and+Clawbacks+is+worth+considering+when+private+equity+sponsors+and+portfolio+company+boards+review+executive+compensation+arrangements.+Incorporating+compliance-related+criteria+and+clawback+provisions+may+be+worthwhile.%C2%A0+Such+provisions+may+also+provide+fine+reduction+benefits+in+the+event+of+a+resolution.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EInternational+Operations+Review%3C%2Fstrong%3E.+Portfolio+companies+with+international+operations%2C+particularly+those+involving+government+customers+or+operating+in+higher-risk+jurisdictions%2C+may+benefit+from+periodic+FCPA+and+anti-bribery+compliance+reviews.+The+FCPA+Guidelines%E2%80%99+focus+on+conduct+involving+cartels+and+transnational+criminal+organizations%2C+unfair+competitive+advantages%2C+national+security+implications%2C+and+substantial+bribe+payments+can+help+inform+risk+assessment+priorities.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EProduct+Safety+and+Regulatory+Compliance%3C%2Fstrong%3E.+For+portfolio+companies+manufacturing+or+distributing+consumer+products%2C+medical+devices%2C+pharmaceuticals%2C+or+food+products%2C+this+is+a+good+time+to+review+product+safety+compliance+programs%2C+including+defect+reporting+obligations+under+the+Consumer+Product+Safety+Act+and+FDA+regulations.+The+HSU%E2%80%99s+focus+on+knowing+failures+to+report+defects+or+hazards+underscores+the+importance+of+timely+reporting+and+remediation.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3ETrade+Compliance+Programs%3C%2Fstrong%3E.+With+the+establishment+of+the+Trade+Fraud+Task+Force+and+the+MGC+Unit%26%238217%3Bs+first+trade+fraud+case+in+2025%2C+companies+engaged+in+international+trade+may+want+to+take+a+fresh+look+at+tariff+and+customs+compliance+programs.+This+is+particularly+important+given+current+trade+policy+developments+and+heightened+tariff+enforcement.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3E%3Cstrong%3EOngoing+Monitoring+and+Board+Reporting%3C%2Fstrong%3E.+Regular+monitoring+and+board-level+reporting+on+compliance+matters+remains+a+best+practice.+The+DOJ%E2%80%99s+oversight+of+39+active+resolutions+with+reporting+obligations+is+a+reminder+that+compliance+is+an+ongoing+commitment%2C+not+a+one-time+exercise.%3C%2Fspan%3E%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%23be9b64%3B%22%3EV.%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0+Conclusion%3C%2Fspan%3E%3C%2Fp%3E%0A%3Cp%3E%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cspan+style%3D%22color%3A+%237f7f7f%3B%22%3EThe+DOJ+Fraud+Section%26%238217%3Bs+2025+Year+in+Review+reflects+an+active+and+evolving+enforcement+environment.+%C2%A0The+record-setting+activity%2C+expansion+into+new+areas+like+consumer+protection+and+trade+fraud%2C+and+renewed+willingness+to+indict+corporations+all+suggest+that+compliance+deserves+continued+attention+at+the+board+and+management+level.+%C2%A0For+private+equity+sponsors+and+portfolio+company+senior+management%2C+the+report+offers+helpful+insight+into+the+DOJ%E2%80%99s+current+thinking+and+priorities%E2%80%94information+that+can+inform+thoughtful+investment+decisions%2C+compliance+planning%2C+and+risk+management.+%C2%A0We+are+happy+to+discuss+any+of+these+developments+in+more+detail+and+how+they+may+relate+to+your+specific+situation.%3C%2Fspan%3E%3C%2Fp%3E%0A