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Dechert to Face Three UK Trials and Two US Lawsuits Arising from Ex-Partner’s Actions

DECHERT TRIALS

International law firm Dechert is facing three trials in the United Kingdom and two lawsuits in the United States, all linked to former UK partner Neil Gerrard. Gerrard, who was global co-chair of Dechert’s white-collar and securities litigation practice before retiring in 2020, has been accused of various improprieties during his time at the firm, which Dechert has vehemently denied.

The allegations against Gerrard have raised concerns about the financial and reputational costs that Dechert may face due to litigation connected to his actions. Gerrard was recruited by the firm in 2011 as a “star lawyer,” with a promise of potential fees worth up to $24 million and his mining client, the Eurasian Natural Resources Corp. (ENRC). However, ENRC now alleges that Gerrard leaked information to investigators and the media during an internal probe of its Kazakhstan mining operation to widen the probe and increase his fees.

A London judge ruled last year that Gerrard was at fault for the leaks and had acted in a “reckless breach of duty.” A damages trial about this matter is set to begin on March 6, 2023.

In addition to the ENRC case, Gerrard has been accused of various improprieties concerning his work for Ras Al Khaimah, one of the United Arab Emirates. These allegations include conspiring to hack and release the emirate’s enemies’ emails and questioning executives who were unlawfully detained.

Several suits have been filed concerning these allegations, including a civil racketeering suit brought by Missouri-based aviation entrepreneur Farhad Azima, who had been involved in commercial ventures with Ras Al Khaimah. Azima alleges that Gerrard conspired to hack and release data to silence his complaints about the emirate’s human rights abuses. This suit is pending in the US District Court for the Southern District of New York.

Fired reporter, Jonathan “Jay” Solomon of the Wall Street Journal, has also filed a civil racketeering suit in connection with the same matter, alleging that his email communications with Azima were swept up in the hack. According to the suit, Solomon was fired in June 2017 because some “suggestive language” in the emails doubted his integrity. This suit is pending in the US District Court for the District of Columbia.

Meanwhile, two Jordanian lawyers, Karam Al Sadeq and Jihad Quzmar have separately accused Gerrard and other former Dechert partners of participating in their unlawful detention and mistreatment. Both suits are pending in the Queen’s Bench Division of the UK’s High Court of Justice. Additionally, London-based firm Stokoe Partnership Solicitors, representing Al Sadeq, has filed a suit alleging attempted hacking in the same court.

Dechert and Gerrard have denied all of the allegations against them, stating that they were unaware of any hacking targeting Azima and that the lawyers claiming to have been unlawfully detained are mistaken. However, the spate of allegations against the firm and its former partner has led to questions about the potential financial and reputational damage that Dechert may suffer due to the ongoing litigation.

Rachel E: