Corporates undertaking an internal investigation into potential
wrongdoing will welcome a recent decision of the English Court of
Appeal.
The Court confirmed that, provided all other criteria are met,
documents generated during the course of an internal investigation
in anticipation of regulatory action or criminal prosecution may be
protected by litigation privilege. In other words, the documents
may not have to be disclosed to the regulator or prosecutor.
The Court said that it is in the public interest that corporates
should be able to investigate allegations of wrongdoing, prior to
going to a regulator or prosecutor, without losing the benefit of
privilege. Otherwise corporates might not investigate at all for
fear of being forced to reveal what their investigations
uncovered.
