ByMichael Ashley,
Contributor.
“What antitrust concerns could our regulators bring up if tomorrow’s merger moves forward?” This is the question a CFO asks AI right before a major board meeting. Little does this well-meaning executive realize the legal exposure her query may have just created for her and her company.
To appreciate how and why, let’s back up to discuss a recent ruling sending shockwaves through business and legal circles. It pertains to a case involving Bradley Heppner. In October of last year, a federal grand jury indicted the Texas financial executive who once ran GWG Holdings, a publicly traded company. Heppner was accused of defrauding investors to the tune of $150 million through self-dealing transactions across two companies clandestinely under his control.
Here’s where AI comes in. As the law firm Venable explains, “After receiving a grand jury subpoena and retaining counsel, Heppner used Claude to prepare reports outlining potential defense strategies and legal arguments. He later shared those reports with his attorneys and asserted privilege over them.”
