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Lateral hires: The challenges of protecting confidentiality

7 September 2016

Following the PAG litigation, firms need to be aware of the problems that recruiting staff at every level can cause, write Andrew Blair and Stephanie Robinson

The challenges posed by lateral hiring
were again brought to the fore by the replacement in February 2016 of litigation boutique Cooke Young & Keidan (CYK) by Bird & Bird in the £30m Libor dispute Property Alliance Group (PAG) v Royal Bank of Scotland (RBS).

CYK represented the property investment company PAG in its derivatives mis-selling claim against RBS, which went to trial in June.

RBS sought an injunction against CYK to have the firm removed as PAG's lawyers over alleged issues relating to confidential information arising out of CYK's hire of a junior associate who used to work at Clifford Chance. The two-and-a-half-year-qualified associate trained and qualified at the Magic Circle firm before moving to another firm...

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