When an executive ignores his in-house counsel, not only the company is at risk:
“On March 3, 2016, the Ninth Circuit affirmed a district court decision holding the former president of Commerce Planet, Inc….personally liable for the company’s violations of Section 5 of the FTC Act…The most interesting part of the case was [the] apparent refusal to listen to the advice of Commerce Planet’s counsel…Commerce Planet’s in-house counsel Paul Huff testified that when questions about the legality of the webpages were brought to his attention, [he] ‘put his hands over his ears, and refused to discuss the matter further.’ The Ninth Circuit agreed that [his] decision to bury his head in the sand was a proper basis on which to find him personally liable.”
Read: Company President Liable for Millions in Restitution After Ignoring In-House Counsel at Troutman Sanders
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