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Category: Fees & Corp. Bylaws

Ex-Uber Official Seeks Coverage of Fees Under Corporate By-Laws

October 13, 2020

A recent Law 360 story by Rose Krebs, “Uber’s Ex-Security Chief Seeks Legal Fees For Breach Suit,” reports that Uber's ex-head of security filed suit in Delaware Chancery Court seeking to have the company pay his legal fees in connection with charges he faces for allegedly trying to cover up a cyberattack that exposed the data of 57 million riders and drivers.  Joseph Sullivan, who is also a former cybercrime prosecutor at the U.S. Department of Justice, says Uber Technologies Inc. should cover his legal fees per a "mandatory indemnification and advancement" provision of the ride-hailing company's bylaws.

"Uber granted its 'officers' mandatory advancement rights and yet is resisting those rights for its former chief security officer, Mr. Sullivan, who has been sued by the federal government by reason of the fact of his service to the company as an officer," the suit asserted.  In August, Sullivan was charged in California federal court with obstructing justice and concealing a felony for allegedly misleading the Federal Trade Commission about the 2016 incident, which included a $100,000 payoff he allegedly arranged from Uber to two hackers in exchange for keeping the episode quiet.

Uber initially referred to the payout internally as part of its "bug bounty" program, which incentivizes cybersecurity experts to report security flaws to the company.  But the $100,000 sum was 10 times the program's award cap at the time, and an Uber executive later admitted to Congress that the payoff was akin to extortion.  The payment and cover-up came at the same time as Uber was negotiating a settlement with the FTC over a similar 2014 incident in which hackers pilfered user data from one of Uber's Amazon cloud storage sites, according to another criminal complaint.

Sullivan, who was "visibly shaken" after hearing of the new breach, concealed the episode from both the FTC and Uber's attorneys who were negotiating with federal regulators, the DOJ asserts.  Sullivan told a co-worker at the time "that he could not believe they had let another breach happen and that the team had to make sure word of the breach did not get out," a witness told investigators, according to the California suit.

Sullivan is also accused of misleading Uber's new management team that took over in 2017, editing a summary of the incident prepared by his team to remove key details including that the hackers had stolen user data, court filings said.  The company's CEO, Dara Khosrowshahi, announced the data breach in November 2017, saying that Sullivan had been fired for not disclosing the incident sooner.  Since allegations in the California suit relate to his alleged conduct in connection with the 2016 breach and during his time as an Uber officer, Sullivan contends he is entitled to have the company advance his legal fees.

The Nation’s Top Attorney Fee Experts of 2020

June 24, 2020

NALFA, a non-profit group, is building a worldwide network of attorney fee expertise. Our network includes members, faculty, and fellows with expertise on the reasonableness of attorney fees.  We help organize and recognize qualified attorney fee experts from across the U.S. and around the globe.  Our attorney fee experts also include court adjuncts such as bankruptcy fee examiners, special fee masters, and fee dispute neutrals.

Every year, we announce the nation's top attorney fee experts.  Attorney fee experts are retained by fee-seeking or fee-challenging parties in litigation to independently prove reasonable attorney fees and expenses in court or arbitration.  The following NALFA profile quotes are based on bio, CV, case summaries and case materials submitted to and verified by us.  Here are the nation's top attorney fee experts of 2020:

"The Nation's Top Attorney Fee Expert"
John D. O'Connor
O'Connor & Associates
San Francisco, CA
 
"Over 30 Years of Legal Fee Audit Expertise"
Andre E. Jardini
KPC Legal Audit Services, Inc.
Glendale, CA

"The Nation's Top Bankruptcy Fee Examiner"
Robert M. Fishman
Cozen O'Connor
Chicago, IL

"Widely Respected as an Attorney Fee Expert"
Elise S. Frejka
Frejka PLLC
New York, NY
 
"Experienced on Analyzing Fees, Billing Entries for Fee Awards"
Robert L. Kaufman
Woodruff Spradlin & Smart
Costa Mesa, CA

"Highly Skilled on a Range of Fee and Billing Issues"
Daniel M. White
White Amundson APC
San Diego, CA
 
"Extensive Expertise on Attorney Fee Matters in Common Fund Litigation"
Craig W. Smith
Robbins LLP
San Diego, CA
 
"Highly Experienced in Dealing with Fee Issues Arising in Complex Litigation"
Marc M. Seltzer
Susman Godfrey LLP
Los Angeles, CA

"Total Mastery in Resolving Complex Attorney Fee Disputes"
Peter K. Rosen
JAMS
Los Angeles, CA
 
"Understands Fees, Funding, and Billing Issues in Cross Border Matters"
Glenn Newberry
Eversheds Sutherland
London, UK
 
"Solid Expertise with Fee and Billing Matters in Complex Litigation"
Bruce C. Fox
Obermayer Rebmann LLP
Pittsburgh, PA
 
"Excellent on Attorney Fee Issues in Florida"
Debra L. Feit
Stratford Law Group LLC
Fort Lauderdale, FL
 
"Nation's Top Scholar on Attorney Fees in Class Actions"
Brian T. Fitzpatrick
Vanderbilt Law School
Nashville, TN
 
"Great Leader in Analyzing Legal Bills for Insurers"
Richard Zujac
Liberty Mutual Insurance
Philadelphia, PA