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From the Analytica case:
Is the law firm disqualified from representing Analytica in an antitrust suit against NPD given that it previously had access to NPD’s confidential financial and operating data? Why or why not?
Yes. A lawyer may not represent an adversary of his former client if the subject matter is “substantially related.” The Schwartz attorneys had access to NPD’s confidential financial and operating data while putting together the stock deal for Malec. The Schwartz attorneys then wanted to represent Analytica, an adversary of NPD in this antitrust lawsuit. The data provided all matters potentially relevant to both the liability and damage phases of an antitrust lawsuit. The two representations are thus substantially related, even though we don’t know whether any of the information received would be useful in Analytica’s lawsuit.