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The Spodek Law Group understands how delicate high-profile cases can be, and has a strong track record of getting positive outcomes. Our lawyers service a clientele that is nationwide. With offices in both LA and NYC, and cases all across the country - Spodek Law Group is a top tier law firm.

Todd Spodek is a second generation attorney with immense experience. He has many years of experience handling 100’s of tough and hard to win trials. He’s been featured on major news outlets, such as New York Post, Newsweek, Fox 5 New York, South China Morning Post, Insider.com, and many others.

In 2022, Netflix released a series about one of Todd’s clients: Anna Delvey/Anna Sorokin.

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The reason is simple: clients want white glove service, and lawyers who can win. Every single client who works with the Spodek Law Group is aware that the attorney they hire could drastically change the outcome of their case. Hiring the Spodek Law Group means you’re taking your future seriously. Our lawyers handle cases nationwide, ranging from NYC to LA. Our philosophy is fair and simple: our nyc criminal lawyers only take on clients who we know will benefit from our services.

We’re selective about the clients we work with, and only take on cases we know align with our experience – and where we can make a difference. This is different from other law firms who are not invested in your success nor care about your outcome.

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Estimating Outside Counsel Spend for Responding to an FTC Civil Investigative Demand

By Spodek Law Group | January 24, 2024
(Last Updated On: January 24, 2024)

Estimating Outside Counsel Spend for Responding to an FTC Civil Investigative Demand

Receiving a civil investigative demand (CID) from the Federal Trade Commission can be a daunting experience for any business. These information requests are often broad in scope, seeking documents, data, testimony and more related to an FTC investigation. Responding thoroughly takes time and legal expertise, resulting in significant outside counsel fees.

So what can you expect to pay competent outside counsel to handle an FTC CID response? Total costs often range from $100,000 to $500,000+, with fees accumulating quickly due to the fast-paced nature of these investigations. However, understanding what drives expenses can help you budget appropriately.

Key Factors That Impact FTC CID Response Costs

There are several key factors that influence what your business will pay outside counsel for assisting with an FTC civil investigative demand:

  • Scope of the CID – The breadth of the requests, including number of interrogatories, document requests and depositions sought, is directly proportional to costs.
  • Size of your business – Data volume, number of custodians and complexity of operations also increase expenses.
  • Urgency – Short deadlines mandated by the FTC put pressure on law firms and drive up rates.
  • Risk level – Higher liability matters often require more partner-level guidance at premium billing rates.

In addition, choice of law firm impacts spending. Large firms charge high hourly fees but may resolve cases more quickly. Smaller specialty boutiques offer lower rates but stretch budgets over longer engagements.

Where Does the Money Go?

FTC CID responses generate significant legal spend because responding comprehensively requires substantial attorney work hours across multiple disciplines. Just some of the effort involved includes:

  • Analyzing CID requests and objections
  • Interviewing company executives and employees
  • Identifying key data sources and systems
  • Preserving, collecting and processing terabytes of data
  • Conducting document review for responsiveness and privilege
  • Preparing written responses and securing supporting affidavits
  • Readying witnesses for investigational hearings

Teams of lawyers and paralegals across practice areas like compliance, litigation and e-discovery devote extensive hours to handling these complex matters. For example, document review alone can consume thousands of hours depending on data volumes. At standard hourly rates ranging from $200 for junior associates up to $1,000+ for senior partners, it’s easy to see how costs add up.

Controlling Outside Counsel Spend

While FTC CID responses come with unavoidable expenses, you can help control outside counsel spending by:

  • Vetting law firms thoroughly based on experience and rates
  • Negotiating discounted hourly fees and case budgets
  • Minimizing service provider markups on expenses
  • Having counsel provide detailed invoices outlining work performed
  • Carefully reviewing monthly invoices before paying

Getting frequent updates from your legal team on the scope of work and associated costs is also wise. This allows both sides to recalibrate efforts based on new developments, helping align total expenditures with case value.

Responding to an FTC investigation is a fluid situation, but understanding the key factors driving legal spend empowers you to make informed decisions. Budgeting adequate resources for a robust response while closely monitoring outside counsel fees allows you to balance legal risk and business priorities.

For advice negotiating FTC CID response fees with qualified counsel, see discussions on Reddit here or ask attorneys on Quora.

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I was searching for a law firm with some power to help me deal with a warrant in New York . After 6 days I decided to go with Spodek Law Group. It helped that This law firm is well respected by not only the top law firms in New York , but the DA , Judge as well. I...

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