Aug 28 (Reuters) - Law firm Orrick, Herrington &
Sutcliffe and a plaintiffs lawyer have denied violating court
orders in a U.S. legal proceeding over the 2023 breach of
Progress Software's ( PRGS ) MOVEit program that affected hundreds of
organizations worldwide.
In a court filing on Tuesday, plaintiffs attorney William
Federman said he and Orrick had authority to negotiate a
$900,000 settlement in Oklahoma state court that was outside the
scope of a related proceeding in federal district court in
Massachusetts.
Orrick last week in a filing said its settlement
negotiations for defendant Paycom Payroll were proper, and urged
U.S. District Judge Alison Burroughs in Boston to find that the
law firm, one of the country's largest, had not run afoul of
case management orders. Oklahoma-based Paycom last year was a
victim of the MOVEit-related cyber attack.
Federman told Reuters on Wednesday that the opposition from
lawyers involved in the Boston litigation amounted to "personal
attacks" against him. He defended the Oklahoma settlement as
being good for the plaintiffs.
Orrick did not immediately respond to requests for comment
on Wednesday, and neither did the attorneys who are leading the
multidistrict litigation in Boston.
The submissions from Orrick and Federman, who is based in
Oklahoma, came in response to an Aug. 13 order from Burroughs
directing the firm and attorney to explain their actions.
The attorneys leading the federal litigation had raised
questions about the propriety of the settlement in Oklahoma,
prompting Burroughs to investigate.
In a filing, the lawyers in Burroughs' court asserted that
Orrick and Federman had negotiated a settlement that could
unfairly knock out claims in the litigation in Boston.
The lawyers in the federal case contend they were not timely
told about the negotiations in Oklahoma and that the attorneys
there were engaging in "bad-faith procedural gamesmanship."
Orrick and Federman countered that the settlement
negotiations in Oklahoma began in February, before Burroughs
issued a key case management order that is in dispute.
Federman's filing accused class counsel of spinning a "false
narrative." Orrick told Burroughs that Paycom wants to "put
money in the pockets of the individuals whose data was impacted,
and move on with business."
Burroughs has not yet said what further steps, if any, she
will take as part of her review.
The case is In Re: MOVEit Customer Data Security Breach
Litigation, U.S. District Court for the District of
Massachusetts, No. 1:23-md-03083-ADB.
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