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Fried Frank, McDermott, Akin, Fenwick: Business of Law

Goldman Sachs executive David J. Greenwald will join his former firm Fried, Frank, Harris, Shriver & Jacobson LLP as co-chairman.

Greenwald, deputy general counsel and international general counsel at Goldman Sachs, will take on the leadership role alongside current chairman, Valerie Ford Jacob. In March 2015, Greenwald will assume the chairmanship and Jacob will become senior partner.

“David is an outstanding lawyer and well-respected leader,” Jacob said in a statement. “His 19 years of experience as general counsel of the merchant banking division, as international general counsel and in other significant roles for our client Goldman Sachs, one of the world’s preeminent financial institutions, will be a tremendous benefit to our clients and to our firm,”

Greenwald joined Goldman Sachs’s legal department in 1994 and was named managing director in 1998 and partner in 2000. Before joining Goldman, Greenwald focused on mergers and acquisitions and private-equity transactions at Fried Frank. He represented clients such as Goldman Sachs and Forstmann Little & Co., the firm said.

“I am delighted to return to my roots at Fried Frank and deeply honored by the opportunity to take a leadership role,” Greenwald said in a statement. “Valerie has been the longest serving chair of the firm and under her leadership the firm has grown and is well positioned for strong performance going forward.”

Fried, Frank, has about 500 attorneys at offices in the U.S., Europe and Asia.

U.S. Patent and Trademark Office GC Moves to McDermott

Bernard J. Knight Jr., general counsel of the U.S. Patent and Trademark Office, is joining McDermott Will & Emery LLP’s Washington office as a partner in the intellectual-property litigation practice group. He will be co-chairman of the firm’s post grant practice, joining the firm in September.

“Bernie has been in the public spotlight as a key architect of the 2012 America Invents Act, which fundamentally changed several of the key provisions of patent law,” Sarah Chapin Columbia, partner and head of the firm’s intellectual property litigation practice group, said in a statement.

Knight has been the Patent Office’s general counsel since 2010. He was previously acting general counsel of the U.S. Treasury.

McDermott’s intellectual-property practice has more than 200 lawyers and patent agents worldwide. The firm has more than 1,100 lawyers at 18 offices in the U.S., Europe and Asia.

Justice Department Lawyer Joins Akin Gump White-Collar Practice

Akin Gump Strauss Hauer & Feld LLP announced that Steven F. Reich, who, was an associate deputy attorney general at the U.S. Department of Justice, joined the firm as a New York-based partner in the firm’s white-collar defense and government investigations practice.

Reich’s practice will focus on representing companies and individuals on matters related to criminal and civil litigation as well as in congressional and internal investigations.

At the Justice Department, Reich was a senior adviser to Attorney General Eric Holder and Deputy Attorney General James Cole and supervised a staff of almost two dozen lawyers responsible for defending the department and its leaders in investigations conducted by Congress and watchdog agencies, the firm said.

“Our white-collar practice is one of the crown jewels of Akin Gump, and Steve represents a formidable addition to our already strong team. His broad experience in both the private and public sectors gives him a unique ability to assist the firm’s clients with their most complex problems, and we are extremely pleased to welcome him to Akin Gump,” Chairwoman Kim Koopersmith said in a statement.

Before working for the Justice Department, Reich was co-chairman of the corporate investigations and white-collar defense practice at Manatt Phelps & Phillips LLP. He also worked on the staff of former Senate Minority Leader Tom Daschle.

Akin Gump has more than 850 attorneys in 18 offices in the U.S., Europe, Asia and the Middle East.

Willkie Farr Hires Bankruptcy Partner Graham Lane in London

Willkie Farr & Gallagher LLP hired reconstruction and insolvency lawyer Graham Lane as a partner in the London office as of Sept. 1. He was previously a partner with Kirkland & Ellis LLP in London.

Lane represents stakeholders in restructuring and insolvency matters with a focus on cross-border situations.

Willkie Farr has about 600 lawyers at eight offices in the U.S. and Europe.

Firm News

Ropes & Gray to Review China Fraud Probe for GlaxoSmithKlein

GlaxoSmithKline Plc (GSK) Chief Executive Officer Andrew Witty said the U.K. drugmaker commissioned an independent review to investigate the root cause of alleged fraudulent behavior among senior executives in China.

The law firm Ropes & Gray LLP will conduct the review, which will begin within days, said Simon Steel, a Glaxo spokesman.

Allegations this month by the Chinese government that Glaxo bribed hospitals, doctors and health officials prompted Witty to dispatch his head of emerging markets to China to oversee the London-based company’s response. Some senior executives appear to have acted outside of Glaxo’s processes and controls to both defraud the company and the Chinese health-care system, Witty said.

“To see these allegations made about people working for Glaxo is shameful,” he told reporters on a second-quarter earnings conference call in his first public statement since the investigation was disclosed. “We are absolutely committed to rooting out corruption, and we are also absolutely committed to getting to the bottom of what’s happened here.”

The anti-corruption probe will probably hurt the drugmaker’s sales in China, Witty said, adding that it’s too early to say what the impact will be. Glaxo also will probably adopt a tiered pricing structure for the market, Witty said on the call.

While a fine and legal damages are expected, Glaxo may also give further price discounts as a means of goodwill and reparation, Fabian Wenner, a health-care analyst with Kepler Capital Markets in Zurich, said in a note.

China detained four senior Glaxo executives on suspicion of economic crimes, the Ministry of Public Security said July 15. Its finance chief in China, Steve Nechelput, has been unable to leave the country since June because of the investigation, though he hasn’t been arrested or questioned, the company said last week. Mark Reilly, the head of Glaxo’s China pharmaceuticals business, returned to the U.K. on a planned business trip, according to the company.

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Arthur Makadon, Ballard Spahr’s Former Chairman, Dies at 70

Arthur Makadon, chairman of Ballard Spahr LLP from 2002 to 2011, died at the age of 70.

Makadon died yesterday at the Hospital of the University of Pennsylvania in Philadelphia, Mark Stewart, Ballard’s current chairman, said in a phone interview. The cause was lung cancer, he said.

“Arthur was as fine a litigator as the firm has ever seen,” Stewart said in a statement on the firm’s website. “ He was tenacious and possessed of uncommon wisdom and impeccable judgment. He cared deeply about Ballard and the people who work here, and he led the firm as chair with passion, compassion, and resolve. He was fun-loving, irreverent, fierce, and beloved.”

Makadon was born on March 11, 1943, in Philadelphia, the son of Frances Rudnick Makadon and her dentist husband William. He grew up in Lower Merion, a suburb of Philadelphia, and attended Pennsylvania State University in State College, graduating in 1964. Makadon graduated cum laude from the University of Pennsylvania Law School in 1967 and clerked for U.S. District Judge Joseph S. Lord III in Philadelphia before becoming an associate at Paul Weiss Rifkind Wharton & Garrison LLP in New York in 1969.

He returned to Philadelphia a year later to work in the district attorney’s office as chief assistant to Arlen Specter until 1973. He joined Ballard in 1975.

Makadon tried more than 35 cases before juries and an equal number of nonjury trials. He represented public officials and publicly traded companies in grand jury matters and did corporate defense work in antitrust, consumer protection and Employee Retirement Income Security Act cases.

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Western Law Firms Lewis & Roca, Rothgerber Johnson & Lyons Merge

Phoenix-based law firm Lewis & Roca LLP and Rocky Mountain firm Rothgerber Johnson & Lyons LLP will combine Sept. 1 to create a 250-lawyer firm that will be called Lewis Roca Rothgerber LLP.

The firm will have nine offices in the western U.S. with a presence in Arizona, California, Colorado, Nevada, New Mexico and Wyoming.

“Our growth into new markets is driven by our commitment to client service and our clients’ interest in gaining access to legal services throughout the West,” Lewis & Roca’s managing partner, Kenneth Van Winkle, said in a statement.

Van Winkle will become managing partner of Lewis Roca Rothgerber and will continue to reside in the Phoenix office.

Lewis and Roca, with about 180 lawyers, has strengths in litigation and real estate.

Rothgerber Johnson’s 75 lawyers are in one Wyoming and two Colorado locations. The firm has strengths in litigation and insurance reorganization, religious institutions, banking and energy practices. Rothgerber Johnson Chairman Frederick J. Baumann will become executive committee chairman of the new firm, in the Denver office.

“Our clients have been expanding in the Southwest region for some time and encouraged us to find an opportunity to establish a presence there,” Baumann said in a statement. “With Lewis and Roca, we are partnering with a firm with an equally strong reputation in its practices and markets.”

Deals

McDermott Advises Telefonica on KPN’s $10.7 Billion Purchase

McDermott Will & Emery LLP advised Telefonica SA (TEF), which agreed to buy the E-Plus German wireless unit of Royal KPN NV (KPN) in a cash-and-stock deal valuing the unit at 8.1 billion euros ($10.7 billion) to become the country’s biggest mobile-phone operator by customers. Allen & Overy LLP is acting for KPN.

McDermott’s deal team included corporate partner Joseph Marx, based in Frankfurt along with corporate partners Philipp von Ilberg, Andreas Kurtze, Clemens Just and Martin Kniehase. In addition, trial/arbitration partner Sabine Konrad, international tax partner Kian Tauser, antitrust/competition partners Martina Maier and Philipp Werner, and IP litigation partner Ralf Weisser advised on the transaction. The German firm CMS Hasche Sigle is representing the company’s subsidiary, Telefonica Deutschland.

A&O’s deal team for KPN was led by Amsterdam corporate partner Jan Louis Burggraaf, flanked by Frankfurt corporate partner Hartmut Krause, Amsterdam competition partner Kees Schillemans and Frankfurt tax partner Asmus Mihm.

The Dutch phone company will get 5 billion euros in cash and a 17.6 percent stake in the combination of E-Plus and Telefonica Deutschland Holding AG (O2D), the Spanish carrier’s German unit, which uses the O2 brand, KPN said.

The purchase would let Telefonica’s O2 surpass Deutsche Telekom AG (DTE) and Vodafone Group Plc (VOD) as stiffening competition in the German wireless market forces carriers to cut prices and seek mergers. Still, the elimination of a carrier by combining the third- and fourth-largest operators will face scrutiny from antitrust regulators.

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Cisco Agrees to Acquire Sourcefire for About $2.7 Billion

Fenwick & West LLP advised Cisco Systems Inc. (CSCO), the biggest maker of networking equipment, on its agreement to acquire Sourcefire Inc. (FIRE) for about $2.7 billion, adding anti-hacking technology used extensively by the U.S. government. Morrison & Foerster LLP represented Sourcefire.

The Fenwick transaction team included corporate attorneys Doug Cogen and Andrew Luh; Scott Spector, executive compensation and employee benefits; Stephen Gillespie, technology transactions; and Ron Schrotenboer, tax.

MoFo Northern Virginia partners Lawrence Yanowitch and Charles Katz led the deal team for Sourcefire. Other deal team partners include Thomas Knox, intellectual property matters; Domnick Bozzetti, employee compensation matters; David Meyer and Jonathan Gowdy, antitrust matters; John Harper, tax matters; and Lawrence Bard, securities matters.

Cisco will pay $76 a share in cash, the San Jose, California-based company said.

Chief Executive Officer John Chambers is expanding in cybersecurity to fend off competition from smaller rivals such as Palo Alto Networks Inc. (PANW) and Fortinet Inc. (FTNT), which make Internet firewalls. Sourcefire’s intrusion-detection products may help Cisco win more business from corporate and government customers seeking to beef up network protections as hacker attacks become more sophisticated and widespread.

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News

Munger Triples Publisher’s Value With Panic-Era Wager on Stocks

Daily Journal Corp. (DJCO), the California publisher that counts Charles Munger as its chairman, more than tripled in value since 2008 after the company jumped into stocks during the financial crisis.

Best known as Warren Buffett’s longtime business partner, Munger began accumulating equities in early 2009 at the Daily Journal. The portfolio was worth $112.3 million as of March 31, or about 65 percent of the Los Angeles-based publisher’s current market value. Investors who attend the company’s annual meetings said he signaled that Wells Fargo & Co. (WFC) was among the bets.

Munger’s involvement has drawn investors for years to the Daily Journal, which covers the law, business and real estate at its 10 newspapers and California Lawyer magazine. The 89-year-old helped Buffett build Berkshire Hathaway Inc. (BRK/A) from a failing textile maker into one of the world’s largest companies through stock picks and takeovers.

The Daily Journal portfolio includes stocks in three Fortune 200 companies and a pair of foreign manufacturing firms, according to regulatory filings that don’t name the holdings. The publisher said it relies on the judgment and suggestions of Munger and Vice Chairman J.P. Guerin in managing the portfolio.

The billionaire declined to comment about the investments through an assistant. Daily Journal Chief Executive Officer Gerald Salzman also declined to comment.

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To contact the reporter on this story: Elizabeth Amon in Brooklyn, New York, at eamon2@bloomberg.net

To contact the editor responsible for this story: Andrew Dunn at adunn8@bloomberg.net

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