A general counsel of a publicly traded technology company, admitted to practice law in California, wrote and revised legal documents for a sister company located in Hawaii.
An independent third party company used the documents to negotiate a contract. Shortly after, they discovered that the documents had several inaccuracies and misrepresentations. As a result, the independent company lost substantial sums of money. The independent company alleged that the general counsel was negligent in giving legal advice. In addition, the independent company notified the Office of Disciplinary Counsel to investigate unauthorized practice of law as they were not licensed to practice law in Hawaii. The matter settled for $3 million dollars.