Kaiser PLLC Litigates One of Law360’s “Biggest Legal Ethics Cases of 2023”
Kaiser PLLC’s representation of Walgreens against its former attorneys at Crowell & Moring LLP has been named by Law360 as one of the “biggest legal ethics cases of 2023.” A Kaiser team including Courtney Forrest, William Zapf, Stephen Gilson, and Sarah Fink represents Walgreens in two related cases in D.C. federal district court and D.C. Superior Court. In both cases, Walgreens alleged that Crowell “betrayed” Walgreens by first advising Walgreens on its usual and customary (“U&C”) pricing policies, and then later persuading health insurance companies to sue Walgreens on the same or substantially related U&C matters, in violation of D.C. Rule of Professional Conduct 1.9.
In the federal case, Walgreens asked the court to vacate a $642 million arbitration award that Humana won against the company. In the D.C. Superior Court case, Walgreens sought damages for breach of fiduciary duty, including indemnification, attorneys’ fees, and disgorgement of Crowell’s profits from the conflicted representations.
On December 22, 2023, Walgreens and Crowell notified the D.C. Superior Court that they have reached a settlement, and the court stayed the case while the agreement is being finalized. The federal district court also issued an order on December 22 staying the case between Humana and Walgreens.
