Mylan Inc. v. Kirkland & Ellis LLP
United States Court of Appeals for the Seventh Circuit
2015 WL 12733414 (2015)
Kirkland & Ellis (Kirkland) (defendant) had long represented Mylan N.V., the parent holding company of Mylan Inc. and affiliates (Mylan) (plaintiffs), on various matters; when direct competitor Teva Pharmaceuticals hired Kirkland to pursue a hostile takeover of Mylan N.V., Kirkland's conflict check found no formal conflict (since Mylan N.V. itself had never technically been a client) and it erected an ethical wall between the Teva and Mylan legal teams. Mylan's board rejected Teva's offer, and Mylan sued Kirkland in Pennsylvania state court for breaching its fiduciary duties under the Rules of Professional Conduct, seeking a preliminary injunction against Kirkland's continued representation of Teva.
Whether, absent informed consent, a lawyer can represent the prospective buyer of a company in negotiations with a prospective seller whom the lawyer represents on other matters.