3rd Circ. Holds Bankrupt Co.'s Trustee To Grand Jury Gag

Law360 (January 10, 2020, 8:55 PM EST) -- The Third Circuit on Friday told a bankrupt telecommunications provider that a gag order on grand jury requests for information on a subscriber's employee bars it from telling its own bankruptcy trustee about a federal criminal investigation.  

Saying it would not attempt to judge whether the trustee could be trusted with the information, the panel nevertheless agreed with a district court decision that the orders binding the company to silence were the least restrictive way to protect the government's need for secrecy and should not be modified.

"Disclosure by an electronic service provider to a third party undermines the government's interest...

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