Representing Celebrities Or Not, Lawyers Should Consider These Issues Of Confidential Settlements

Confidentiality clauses—discussed in news reports of recent celebrity sex harassment scandals—have become a standard provision for parties entering settlement agreements. Attorneys routinely advise clients on the pros and cons of confidential settlements and whether confidentiality should be an essential term or a "deal breaker" for a particular settlement.

A client may prefer a confidential settlement for a variety of reasons. For example, a defendant may seek confidentiality to avoid the perception of the settlement as a "win" for the plaintiff. With public disclosure of a settlement, other potential claimants could be encouraged to bring suit without bearing in mind the facts and issues particular to their claims. A plaintiff, on the other hand, may prefer a confidential settlement as a means to prevent the release of private information, such as any personal or sensitive facts underlying the plaintiff's claims.