Reputation Management — DoJ Investigation

The situation

The U.S.-based member of a global financial services firm faced potential indictment from the Department of Justice concerning questionable products sold to certain investors. As details of the potential indictment and discussions about a settlement leaked in the news media, the firm needed to put in place a communications plan to address client and partner concerns, create an environment conducive to settlement negotiations, and manage media speculation over the settlement. A post-Arthur Andersen media and regulatory backdrop exacerbated the need for the firm to move quickly to protect its reputation over the long term regardless of impending negative media coverage.

Public Strategies' solution

Before the initial media leak, Public Strategies set up a war room in the firm's New York headquarters, working directly with the chairman, chief counsel and board of directors on a media leak strategy, message development and delivery, rapid response, and outreach with key stakeholders, including the firm's global leadership, its U.S. clients, partners, employees, regulators and investors. After the initial news story, Public Strategies put in place a system to ensure the firm's leadership was in a position to to address employee and partner concerns quickly. This involved managing an influx of hundreds of e-mails a week from across the country. As negotiations with the Department of Justice continued, Public Strategies worked directly with the firm's leadership to create a comprehensive plan for a settlement announcement.

Client Benefits

Despite months of media coverage, client and partner concerns about the impact of the settlement were quickly mitigated through consistent dialogue with the firm's leadership. Once the agreement with the Department of Justice was announced, the fluid communications process that had been established helped manage client and employee concerns, dispelled rumors and speculation, and allowed the firm's leaders to put the settlement behind them so they could begin talking about their vision for the future.