Brevet Capital responds to articles tying its suit to COVID-19 privacy issues

Letter to the Editor:

Certain recent articles that appeared on Law.com and its affiliated websites address the impact of COVID-19 and worker privacy protections. These are timely, important topics, particularly for investment management firms, such as Brevet Capital Management (“Brevet”), which I am proud to represent. As an SEC-registered and regulated investment advisory firm, Brevet takes these matters seriously and has strong policies and procedures in place that govern the rights of the firm and its employees as they relate to company-owned computers and technology. Brevet does so to comply with its obligations and to protect its investors.

The articles, which contain passages that are nearly identical in their content, intent, or structure, are as follows: (1) “Adopting working privacy protections on company devices,” by Karen Hertz, at https://www.propertycasualty360.com/2020/04/14/make-something-good-out-of-covid-19-adopt-worker-privacy-protections-on-company-devices-414-176070/?slreturn=20200316225715; (2) “Make Something Good Out Of COVID-19: Adopt Worker Privacy Protections on Company Devices,” by Karen Hertz, at https://www.law.com/legaltechnews/2020/04/07/make-something-good-out-of-covid-19-adopt-worker-privacy-protections-on-company-devices; and (3) “Privacy in the Pandemic Age: Balancing Business Need-to-Know vs. Employee Privacy,” by Richard Levick, at https://www.law.com/litigationdaily/2020/04/15/privacy-in-the-pandemic-age-balancing-business-need-to-know-vs-employee-privacy. Each article refers to an over three-year old lawsuit involving Paul Iacovacci, a former Brevet partner and employee, and Brevet. We intend to prove that the articles contain gross misstatements, omissions, and distortions. To set the record straight, the facts are as follows, all as pleaded by Brevet in the court cases:

• The computer at issue was not Mr. Iacovacci’s “home computer”. It was Brevet’s computer.
• Brevet did not “steal” data. Brevet’s policies gave it the right to access its computer, including hard drives and devices connected to it. Indeed, as Brevet alleges, and we intend to prove, Mr. Iacovacci specifically asked Brevet to access the computer at issue – and, more important, was personally involved in creating or approving the Brevet policy that gave Brevet the right to access its own computers. Between that participation and his knowledge of SEC requirements, Mr. Iacovacci knew he had no expectation of any privacy on Brevet’s computer.
• Brevet accuses, and we intend to prove, Mr. Iacovacci of “stealing data,” particularly Brevet’s confidential and proprietary information which Mr. Iacovacci misappropriated without authorization.

COVID-19 has unarguably altered the work-from-home dynamics for at least the foreseeable future. The pandemic raises important questions for employers and employees alike. Yet the authors’ suggestions that the Brevet litigations are at all applicable or can serve as a warning about employer overreach seriously misses the mark.

Very truly yours,

Louis M. Solomon Reed Smith LLP