Wednesday, January 14, 2009

Holder - Breuer Law Firm Long Involved With Drug Policy

Obama Justice Department Appointees from powerhouse food, pharmaceutical and cigarette industry law firm of
Covington & Burling
that advised the anti drug war Drug Policy Foundation

Obama's selection as the U.S. Attorney General: Eric Holder
Holder, yet another ex-Clintonite, was Clinton's Deputy Attorney General and US Attorney General for the Washington DC area. He is an extreme drug warrior who believes that harsher and longer sentences should be enacted for minor crimes such as marijuana use and prostitution. This, in spite of the mounting evidence that the "war on drugs" is a failure and has amounted to nothing more than a war on black people, which also appears to be it's original intent. He wants harsher sentencing for marijuana, which will impact American youth more than any other demographic, and it will specifically impact African-American youth, who are already targeted to be shuffled off to America's new plantations, US prisons.
From a Wall Street Journal comments board:

Eric Holder the Attorney General nominee, has been a pharmaceutical company prostitute working for many companies in their defense. he will come before the Senate on Thursday and let us hope that Senator Grassley or Specter among others will crucify him in his defense of Medicaid fraud. He , for example was the lead defense lawyer for Merck in their huge fraud case involving marketing practices and billing. How can make over 2 million per year defending corrupt Big Pharma, and then be expected to be an agresssive advocate against Medicaid fraud. Get rid of this creep and get someone with no ties to PhRMA….Holder would be the worst choice imaginable at the same time the DOJ is trying to clean up the billions of dollars bilked from taxpayers illegally from Pharmaceutical companies. Go get him Grassley-we will be watching.
Comment by Pharmacleanup - January 12, 2009 at 1:14 pm
From The Washington Independent:

Here’s an interesting tidbit from yesterday’s Legal Times: Attorney General-designate Eric Holder last week revealed to the Senate Judiciary Committee that he earned more than $2.1 million in 2008 as a partner at Covington & Burling. That’s even better than the average partner at the firm, who earns a measly $1.175 million. And it soars high above the $186,000 salary Holder would get if he’s confirmed as attorney general.

2009 is projected to look even better, even if Holder is no longer at the firm, Legal Times reports. Holder expects to rake in $2.5 million in deferred compensation, some other work he did at the firm this year, and a severance payment of $1.3 million. (That’s severance for quitting?!)

Holder listed his net worth at $5.7 million.

How did Holder make all this money at the firm? By representing huge corporations when they got into trouble. As I’ve reported before, Holder’s clients at Covington included the National Football League, the pharmaceutical giant Merck, the big banana Chiquita Brands, UBS Financial Services and Bank of America. He’d also registered as a lobbyist for Global Crossing and other companies.

Having earned millions of dollars defending the world’s wealthiest corporations doesn’t make Eric Holder unqualified to be attorney general; one could argue that having been both a prosecutor and a defender, he knows how both sides work and can be particularly effective.

On the other hand, it does underscore the circles he travels in and who he might be inclined to do favors for in the future.

From his Covington & Burling bio:

"The Feds Increasing Focus on the Pharmaceutical Industry," Update Magazine 2001, Issue 6 with permission from FDLI (11/30/2001), Co-Author

Obama's selection for heading the Justice Department criminal prosecution division: Lanny Breuer

From his Covington & Burling bio:

Lanny Breuer, co-chair of Covington’s White Collar Defense and Investigations practice group, specializes in white collar criminal and complex civil litigation, internal corporate investigations, congressional investigations, antitrust cartel proceedings, and other matters involving high-profile legal, political, and public relations risks. Mr. Breuer represents corporations and individuals across a broad array of subject matters including corporate accountability, fraud and abuse, securities investigations and litigation, food and drug regulation, medical device health and safety, antitrust, conflicts of interest [bold added], environmental crimes, foreign corrupt practices, national security, and export controls. Mr. Breuer has been recognized as a leading litigator, including being named a fellow in the American College of Trial Lawyers. Washingtonian Magazine recently described Mr. Breuer as “one of the cleverest in Washington.”

Representing several major corporations before Congress, including a leading Internet company in a hearing concerning its foreign business activities, major pharmaceutical companies targeted in oversight investigations, the Los Alamos National Laboratory in a national security investigation, and a large Wall Street firm in the Enron hearings.

· Washingtonian, named one of thirty “Big Guns,” the top lawyers in Washington (December 2007).

· Best Lawyers in America, selected as a top white collar criminal defense, health care, corporate governance and compliance law attorney as well as a top commercial and product liability litigator (2009).

The law firm: Covington & Burling:

The founders of Covington & Burling foresaw the pervasive effects of the forthcoming era of federal legislation, regulation, and taxation. In 1919, they sought to create a firm in the nation's capital that could advise and represent corporations located anywhere in the nation or the world on a wide range of legal issues. Today our Washington office has over 300 lawyers representing clients according to the highest standards and fulfilling the firm's strong commitment to public service. Our lawyers are supported by nearly 100 paralegals and by information management specialists in the library, and in the litigation and practice support, and technology departments.

This firm’s oldest practices is its presence in food and drug law, with its web-site in 2005 listing 18 attorneys at its Washington, D.C. headquarters – 9 partners including two former Chief Counsels to the Food and Drug Administration (and including Marialuisa Gallozzi, ”assigned to take primary responsibility for advising the [Drug Policy] Foundation”), and 9 associates – who devote all or a major portion of their time to this practice, plus 6 additional lawyers at its offices in London and Brussels. According to the firm’s site at

Covington & Burling has a large and comprehensive food and drug law practice. The Firm’s food and drug practice began at the Firm’s founding in 1919 with representation of the National Canners Association (now the National Food Processors Association and still a client). From that time, the Firm’s practice has steadily expanded to include all types of food and drug work and work relating to scientific and technology research. Past and present clients for which the Firm serves as general counsel or principal outside counsel include the Animal Health Institute, American Institute of Biological Sciences, American Bakers Association, American Forest & Paper Association, Chemical Industry Institute of Toxicology, Corn Refiners Association, Cosmetic, Toiletry and Fragrance Association, Epilepsy Foundation of America, Institute of Shortening and Edible Oils, International Dairy Foods Association, National Food Laboratories, National Pharmaceutical Council, Consumer Healthcare Products Association and Toxicology Forum.

This work includes political organization on behalf of its clientèle industries. According to the firm’s site at

The Firm was actively involved on behalf of major clients in connection with each important statutory revision in the federal food and drug laws, including the 1938 Federal Food, Drug, and Cosmetic Act, and its major amendments, including —

the Pesticide Amendments of 1954,
the Food Additives Amendment of 1958,
the Color Additive Amendments of 1960,
the Drug Amendments of 1962,
the Animal Drug Amendments of 1968,
the Medical Device Amendments of 1976,
the Orphan Drug Act,
the Drug Price Competition and Patent Term Restoration Act of 1984,
the Generic Animal Drug and Patent Term Restoration Act of 1988,
the Prescription Drug Marketing Act of 1988,
the Safe Medical Devices Act of 1990,
the Nutrition Labeling and Education Act of 1990,
the Prescription Drug User Fee Act of 1992,
the Animal Medicinal Drug Use Clarification Act of 1994,
the Dietary Supplement Health and Education Act of 1994,
the Animal Drug Availability Act of 1996,
the FDA Export Reform and Enhancement Act of 1996,
the Food Quality Protection Act of 1996, and
the Food and Drug Administration Modernization Act of 1997.

Our lawyers have advised or represented clients in a wide range of legislative matters at both the federal and state levels. We have prepared draft legislation and analyzed legislative proposals, including interaction with Congressional members and staff. We have prepared Congressional testimony and advised clients in connection with committee and subcommittee hearings. Our lawyers have advised clients on compliance with new statutory enactments, and represented trade association clients in rulemaking proceedings to implement new statutes. As the 104th Congress undertook to address the issues of general regulatory reform and more specifically FDA reform, firm lawyers played a major role in conjunction with food, drug and cosmetic industry trade associations and other clients in analyzing and drafting legislative reform proposals, and in preparing testimony for presentation at committee hearings.

Covington & Burling’s clientele amongst pharmaceutical and agriculture related firms includes:

GlaxoSmithKline, Monsanto, Merck, Warner-Lambert (Pfizer), Eli Lilly, The Balli Group

Covington for decades has been a preeminent antitrust advisor, regularly providing U.S. and EU antitrust advice to Rx and OTC pharmaceutical companies and biotechnology firms around the world in connection with mergers, acquisitions, divestitures, litigation, R&D collaborations, licensing transactions and other strategic transactions. We have been home to four former heads of the Justice Department’s Antitrust Division and two Chairmen of the ABA Antitrust Law Section - a unique distinction among law firms actively practicing in the antitrust area.


From Coca: Forgotten Medicine

Unmentioned in the firm’s web site is its long established activities as one of, if not unquestionably in every way the world’s largest, legal representative of such agricultural-commodity related industries in one way or another, of pharmaceutical and Tobacco (cigarette) interests.

Covington & Burling also represents every major American tobacco company, including Brown & Williamson Tobacco Corp., Lorillard Tobacco Co., Philip Morris Inc., and R.J. Reynolds Tobacco Co, as well as the now-defunct industry trade association, the Tobacco Institute. The firm helped develop and coordinate the Whitecoat Project, an attempt to keep controversy alive regarding the dangers of passive smoking by hiring scientists to back up and attempt to give credibility to the tobacco industry's point of view that second-hand smoke is not a health risk.

According to internal tobacco industry documents analyzed in 1999 by Public Citizen and the Center for Justice and Democracy, Covington & Burling was a principle organizer and funding conduit for tort reform efforts on behalf of the tobacco industry. Covington & Burling has acted as a pipeline to direct money from its tobacco industry clients to tort reform groups in the states and across the country. For example, in 1995, the tobacco industry allocated nearly $5.5 million to the American Tort Reform Association (ATRA), more than half of ATRA’s $10.2 million budget according to the Associated Press.8

A memo written by a Covington & Burling partner that year reveals the extent to which the law firm helped orchestrate the tobacco industry's tort reform agenda. Written to the industry’s "Tort Reform Policy Committee," the memo called for an expansion of efforts, including a "communications program … intended to enhance our ability to enact favorable legislation at both the federal and state level." The memo noted that "these media activities, to be effective, must not be linked to the tobacco industry."

Covington & Burling is also one of the largest contributors of pro bono work for a wide array of causes from Big Brothers/Sisters to medical marijuana (Therapeutic Cannabis), and has provided valuable legal assistance in a number of such cases, including that by that firm’s Partner Dr. Michael Michelson. This includes work for various tax exempt status Foundations dedicated to some issue or another, including the Drug Policy Foundation. Philanthropic and Grant-Making Organizations

The Firm’s lawyers are regularly sought out to advise on the creation, reorganization and funding of private foundations (including family and company foundations, as well as foundations affiliated with associations or other tax-exempt entities), supporting organizations and public charities and the use of charitable contributions to accomplish specific client goals. In addition, charitable remainder and charitable lead trusts, which require analysis of the federal and state income, gift, estate and generation-skipping transfer tax consequences of each structure, are used to achieve clients’ charitable, tax and family goals. Our clients include the Eugene and Agnes E. Meyer Foundation, the Packard Humanities Institute, Verizon Foundation and UTC Foundation. In one instance we represent affiliated grant-making organizations worth well in excess of $1 billion.

Covington & Burling’s practice with foundations is a long established connection, with the name Frederic A. Delano (Edward Burling’s bother in law by marriage), appearing amongst the 1909 founders of the Carnegie Institution of Washington D.C. (with Daniel Coit Gilman, Cleveland H. Dodge, Andrew Dickson White, and Elihu Root, Darius Ogden Mills and William E. Morrow), and in 1921 the Carnegie Endowment for International Peace was incorporated by Frederic A. Delano, Robert S. Brookings, Elihu Root, who became its first president, John W. Davis, Dwight Morrow, James T. Shotwell. Frederic A. Delano’s name appears as the 1924 founder of the influential Washington D.C. planning group “Committee of 100.”


Covington & Burling's work with foundations has included that with the Washington, .D.C. based Drug Policy Foundation, founded by American University professor Arnold S. Trebach with Kevin Zeese.

Covington & Burling has advised the Drug Policy Foundation.

1988-1989 Drug Policy Foundation Biennial Report- March 1990 Letter by D.P.F.'s Trebach and Zeese

The Drug Policy Foundation was created by people who were convinced that the excesses of the massive worldwide war on drugs were an evil that had to be openly opposed by good men and women everywhere. While the founders of the organization were Americans, they had sympathetic colleagues in many countries who urged tem on and joined with them in this effort. These citizens and officials constitute what may be termed what may be termed the loyal opposition to the war on drugs. They support the worldwide effort to control drug-related crime and corruption, to combat predatory criminal syndicates, to ameliorate the tragedies of drug abuse, and to improve public health. But hey oppose many of the extremist tactics and counter productive strategies now used in this effort.

The Foundation believes that peaceful methods offer the best hope for curbing drug abuse while preserving the constitutional rights of all. Through research, education, legal action, and public information programs, the Drug Policy Foundation hopes to delineate rational models of effective drug policy reform for the nations of the world. The first step is to convince the public and policy makers that opposition to the drug war is decent and humane.

Contrary to claims made by drug warriors, we in the reformist movement are not “pro-drug”. We are concerned about the negative health effects of drugs, but we see the problem aggravated by a prohibitionists policy. Drug prohibition provides criminals a thriving black market that generates obscene profits. These criminals uses their money to buy guns and bribes police. Overworked police fight a loosing battle with the drug gangs.

We in the movement are alarmed at the harsh, mandatory penalties for drugs. In some places, a rock or two of crack will land a user in prison for at least 10 years

The Foundation is not a legalization organization, even though many in the Foundation support outright legalization. The Foundation is concerned with a variety of issues, including education the public about the effects of drug use, preventing the spread of AIDS among drug users, allowing the medical use of currently prohibited drugs, allowing doctors to prescribe drugs as they and their patients see necessary, expanding the availability of drug treatment, creating more effective and less corrupt police forces, preventing the erosion of civil liberties, ensuring the proper use of drug tests in society, and developing social, instead of criminal, controls to prevent drug abuse.

The Foundation is an education, research and legal center. It publishes books, articles and newsletter; rewards people for outstanding achievement in the field of drug policy; responds to media and scholarly information requests; presents regular forums and annual international conference; and represents in court those wronged by the drug war.

The Foundation is a charitable corporation under the laws of the District of Columbia and section 501 ©(3) of the U.S Internal Revenue Code. Thus, all contributions to the Foundation at=re tax-deductable. To maintain its independence, the Drug Policy Foundation neither seeks nor will it accept government funding. The Drug Policy Foundation extends thanks to these persons and organizations who provided vital support during 1988-89. Special thanks go to our three largest contributors: the Chicago Resource Center and its president, Richard Dennis, and executive director, Mary Ann Snyder; the Linnel Foundation in Boston, Mass., and the late Robert Linnell; and Anne “Petey” Cerf of Lawrence, Kan. Their support was and continues to be invaluable to the work of the Foundation.

While the Drug Policy Foundation has outstanding counsel in Kevin Zeese, the leading Washington law firm Covington and Burling accepted the Foundation as a pro bono publico [for the public good] client in regard to corporate and tax matters in 1988. We have received valuable advice from Marialuisa Gallozzi, the Covington and Burling associate assigned to take primary responsibility for advising the Foundation. Having Covington and Burling in our corner is a source of great comfort.”

Notably, with the DPF's work involving drugs that were banned ostensibly based on beliefs that such substances were too risky, the attorney-adviser has her fields of promenance in practices in food, drug and insurance industry law.

Marialuisa ("ML") Gallozzi is a partner in the insurance coverage and food and drug practices.

Her insurance advisory practice focuses on: negotiating settlements of insurance coverage disputes; advising policyholders on the insurance aspects of transactions; negotiating and analyzing terms of policies, including clinical trials, patent and other specialty coverages; and representing policyholders in claims against insolvent and runoff insurers in the United States and abroad, and state guaranty funds. She also provides food and drug advice to manufacturers of medical devices, over-the-counter drugs, and dietary supplements. [bold added]

Ms. Gallozzi is a managing partner for Legal Personnel at the firm, with responsibility for associate issues. She served as an Associate Ombudsperson and co-chaired the summer associate program from 2004 to 2006.

[Her activities include:]

  • Advised Sotheby's on placement of its E&O coverage.
  • Represented a major American food supplier in complex novation transaction involving workers compensation policies.
  • Advised a clinical trials organization on coverage under its clinical trials policy.
  • Represented a multinational corporation seeking coverage for an employee dishonesty claim involving a foreign subsidiary.
  • Represented a medical device manufacturer in dealings with FDA concerning a product recall and subsequent investigation.
  • Represented a financial services company in recovering for its property and business interruption losses caused by the September 11 terrorist attacks.
  • Negotiated numerous settlements with domestic and foreign insurance carriers securing coverage for silicone breast implant, IUD, heart-valve, asbestos, and environmental claims.

Honors and Rankings

  • Chambers USA, leading Insurance - Policyholder lawyer (2007-2008)
  • Guide to the World’s Leading Insurance and Reinsurance Lawyers, Legal Media Group/Euromoney (2006)
  • The International Who’s Who of Business Lawyers (2007)


Presentations and Speeches

  • "Settlement Credits and Excess Insurers," Mealey’s “All Sums: Reallocation & Settlement Credits” Conference (November 2005)
  • "The Food Industry’s View About the Development of Plant-Made Pharmaceutical and Industrials," USDA’s Agricultural Outlook Forum: Ensuring a Healthy Food Supply (February 2004)
  • "Insuring Biotech Risks," American Bar Association, Section of Litigation, Insurance Coverage Litigation Committee CLE Seminar (March 2003)
She is highly regarded within insurance law, so described as:
Rising star Marialuisa Gallozzi enters the tables in recognition of her vast experience in asbestos, silica, pharmaceutical and other coverage claims, in addition to insurer insolvencies. Described as “an expert on London insolvency matters and schemes of arrangement,” she works with US, Bermuda and London market insurers and captive insurers. Peers consider her “an intellectually strong negotiator and adviser with excellent judgment.”

"[She] focuses on representing policyholders in claims against insolvent insurers, an area where she is “really making a name for herself.”

No elaboration is given about what Trebach or Zeese term the 'valuable advice' that she gave the Drug Policy Foundation.

Obama AG From Covington & Burling

Covington & Burling - Bio - Eric H. Holder Jr.

Obama Asst AG Breuer Also From Covington & Burling

Covington & Burling - Bio - Lanny A. Breuer

Drug Policy Foundation Washington, D.C. Legal Connection

Drug Policy Foundation Was Advised By Covington & Burling Food and Drug Attorney

Covington & Burling - Bio - Marialuisa S. Gallozzi

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