Freshfields issues apology following leaked comments regarding Middle Eastern investors

Freshfields has issued an apology following the emergence of comments regarding Middle Eastern investors from a leaked email chain. The correspondence included discussions about a potential spin off of the firm's AI and legal technology division.

In the emails, Ethan Klingsberg, co head of the firm's US corporate and M&A team, reportedly stated that Freshfields would seek to engage with 'sophisticated investors that are respected by the rest of the investor community for their leadership'. He added that this 'probably' excluded 'Middle Eastern sovereign wealth money'.

The email exchange, which was viewed by the Financial Times, focused on proposals to separate Freshfields Lab, the firm’s in house legal tech arm, into a standalone business that could potentially be valued at billions. Alan Mason, Freshfields' global managing partner, had initially outlined these plans to Klingsberg, discussing the prospects for outside investment and the potential for a multibillion dollar valuation.

Mason had also reached out to two Wall Street banks regarding the proposal. The email chain was inadvertently forwarded to a large internal distribution list named '$Freshfields All'. Although the email was quickly recalled, some recipients had already taken screenshots of the content.

In a statement released on Monday, Freshfields distanced itself from the comments made about Middle Eastern investors. The firm asserted that Klingsberg's remarks 'do not reflect the position or beliefs of the firm or those participating in that email chain'.

Freshfields further stated, 'We apologise unreservedly for a comment made about Middle Eastern sovereign wealth investors. The comment does not reflect the position or beliefs of the firm or those participating in that email exchange, and we sincerely regret the offence caused.'

The firm emphasised its respect for its clients in the Middle East, stating, 'We hold our clients across the Middle East in the highest regard and deeply value the longstanding relationships and trust we have built in the region. We have enormous respect for the discerning leadership and global impact of our clients and remain firmly committed to the region.'

Freshfields maintains a significant presence in the Middle East, with offices located in Abu Dhabi, Bahrain, Dubai, and Riyadh.