SDD GLOBAL DRAFTS MOTION TO DISMISS U.S. ANTI-OUTSOURCING CASE, NMH VS. BUSH

WASHINGTON, D.C., August 15, 2008 — In a legal case apparently designed by a U.S. law firm to place roadblocks in the way of the fast-growing legal services outsourcing industry in India, the Indian lawyers are fighting back. Newman McIntosh & Hennessy (“NMH”), a U.S. law firm worried about off-shoring of legal work, sued India-based Acumen Legal Services, along with U.S. President George Bush, in the Washington D.C. federal court. In response, Acumen today filed a hard-hitting motion to dismiss.

NMH is suing on the basis of speculation, unsupported by even a single example, that the U.S. government is intercepting all or most of the data sent by U.S. lawyers to foreign legal outsourcing providers, as part of an anti-terrorism campaign. Seizing on that speculation as an excuse, NMH seeks a court order against “all United States-based attorneys” who outsource legal work to India, and “all foreign legal outsourcing providers.”

Thanks to a motion to dismiss and supporting legal brief prepared by SDD Global in Mysore, India, the NMH law firm is getting an unexpected taste of the kind of high-quality legal work that Indian lawyers can provide, even in the Washington D.C. federal court. In their brief on the motion to dismiss, the legal team for Acumen points out the following:

NMH’s requested declaratory and injunctive relief, in addition to having no legal or factual justification, would reach far beyond NMH’s obviously intended target, namely, low-cost foreign legal outsourcing companies, which NMH apparently perceives as competition. The requested relief could have a substantial adverse effect on the operations of all U.S. law firms that have foreign offices, and all U.S. corporations that need to use foreign counsel to transact business abroad. NMH’s requested ruling that any foreign electronic transmission of data between clients and attorneys, or between attorneys, constitutes a waiver of constitutional rights and discovery privileges, would amount to an untenable and unwarranted interference with global commerce.

Moreover, NMH’s request for an order requiring all attorneys in the United States, including in-house counsel, (a) to search for every instance in which they ever transmitted any kind of data to any foreign national, and (b) to send a notification regarding the same in every case, presumably to the owner of the data, would amount to one of the most onerous and unjustified burdens ever imposed by any court in a civil proceeding.

In addition, by requesting the Court to issue declarations answering seven hypothetical legal questions, purportedly because the NMH law firm “need[s] guidance,” wants “to gain certainty,” and “must understand” various points of law to help the firm “in an increasingly globalized legal services environment,” NMH seeks relief that is impermissible under well-established principles governing declaratory judgments. The NMH lawyers, in essence, are seeking to outsource their legal research tasks to this Court, and secondarily to Acumen, President Bush and their respective counsel.

NMH’s Complaint is extraordinary, not only for what it contains, but even more so for what it does not. Nowhere in the Complaint does NMH allege:

• any example of an actual or impending injury to itself or to anyone;

• any actual or impending violation of Fourth Amendment rights;

• any instance of an actual or impending waiver of Fourth Amendment rights;

• any basis for finding a waiver of Fourth Amendment rights, given that NMH does not allege that any Fourth Amendment rights are being violated by the supposed government interception of data;

• any instance of an actual or impending breach or waiver of attorney-client privilege or confidentiality;

• any actual or impending example of government interception of data;

• any actual or impending instance of transmission of data to any foreign nationals by anyone;

• any basis for NMH’s speculation that electronic transmissions to foreign nationals are more likely to fall into the hands of the government than are domestic transmissions, which are subject to possible domestic surveillance by law enforcement agencies;

• any examples of actual or impending conduct within the District of Columbia by any of the parties;

• any relationship or interaction of any kind among any identified persons or entities in the District of Columbia or anywhere else, except for the unsuccessful solicitation sent by Acumen in India to NMH in Maryland;

• any monetary dispute or requested monetary relief that could support the “amount in controversy” requirement for NMH’s assertion of diversity jurisdiction;

• any legal or factual basis upon which this court could grant the sweeping declaratory and injunctive relief sought against millions of non-parties, such as every lawyer in the United States, and every foreign legal outsourcing company;

• any reason why NMH cannot avoid the speculative dangers it alleges by simply (a) continuing to refrain from using foreign legal outsourcing providers, and (b) seeking a protective order in any litigation where NMH believes that its clients’ data may be sent by adversaries to such providers;

• any legal or factual basis upon which the court could require the Executive Branch to “prevent the waiver of Fourth Amendment rights” or “safeguard the attorney-client privilege and client communications and client confidences and secrets;” or

• any reason why protection is needed beyond the statutory protection already provided by Congress, under which “[n]o otherwise privileged wire, oral, or electronic communication intercepted in accordance with, or in violation of, the [applicable government surveillance provisions] shall lose its privileged character.” See e.g. 18 U.S.C. § 2517(4); 50 U.S.C. § 1806(a).

In short, as further discussed in the remainder of this brief, NMH has not come close to meeting the most basic requirements for standing or personal jurisdiction.

A full copy of Acumen’s motion is available by clicking here.

SDD GLOBAL MAKES 2008 WORLDWIDE TOP 10 LIST

SDD Global Solutions has been ranked among the 2008 top ten legal outsourcing companies worldwide, in a report to be released by The Wall Street Journal and Business Week magazine, in conjunction with The Black Book of Legal Outsourcing. The Black Book grades vendors on 18 key performance indicators for operational excellence and service delivery, based on client surveys. 80 of over 200 legal outsourcing companies qualified to be included in the 2008 survey.

SDD GLOBAL ADDS LONDON, BANGALORE
OFFICES, EXPANDS CAPABILITIES
TO TRANSACTIONS, PATENTS

SDD Global Solutions, the leader in high-end legal services outsourcing to India, has expanded from Mysore and New York, into London and Bangalore. Already the "go-to" legal provider for Fortune 100 media, entertainment and other companies in Hollywood and elsewhere in the United States, SDD Global has added not only new offices, but also new service capabilities, including transactional work and patent services.

London Office Opened

Alex Hannell, one of the world's leading specialists in international media, intellectual property and entertainment transactions, heads SDD Global's new London office, and its new service division, The Business and Legal Affairs Group. Led and trained by Hannell, with outstanding attorneys working in Mysore, this new department handles the transactions and commercial legal affairs of film and television companies, and it can do the same for all other kinds of companies, which (a) are no longer willing to tolerate the usual outside counsel rates in the West, and/or (b) want another alternative to hiring in-house lawyers.

Before joining SDD Global, Mr. Hannell served as Head of Commercial Affairs for Granada International, the worldwide arm of what is now the U.K.'s largest commercial television company, ITV. He is also a veteran of the pre-eminent London-based law firm, Herbert Smith LLP. From 2002 until 2008, Hannell developed his own roster of film and television clients, including a "who's who" list of such companies as Warner Brothers and countless others.

Bangalore Patent Office Added

Simultaneously, SDD Global has opened a patent legal services operation in Bangalore, led by IP experts with an extensive track record in the field. SDD Global's multidisciplinary team of patent agents, scientists, and patent attorneys provides in-depth experience, combined with up-to-date technical knowledge. The team handles IP portfolio creation and management, prior art searches, patentability consulting, infringement analysis, patent drafting and prosecution, valuation and licensing, and a host of other IP services.

New Parent Law Firm, SmithDehn LLP

In other news, SDD Global Solutions is now managed by SmithDehn LLP, the New York and London-based international law firm created by the intellectual property, media, and entertainment attorneys of the former Smith Dornan Dehn PC. Joining these former SDD attorneys at SmithDehn LLP are Alex Hannell in London, former NBC and CBS television in-house counsel Benton Levy, former Chicago Mercantile Exchange Director and Associate General Counsel Patricia Holland, veteran New York trial attorney Kwarma Vanderpuye, U.S. immigration law specialist Priya Kumar, and others.

Says Frank Dehn, a Harvard Law School graduate and managing attorney of SmithDehn's New York office: "Every modern U.S. law firm is now struggling to figure out its 'India Strategy.' We're the only Western law firm that not only has one, but already has been implementing it on the ground."

Another SmithDehn founder, Columbia Law School graduate Russell Smith, who spends most of his time in Mysore, managing SDD Global Solutions,
says: "With its new offices, new practice areas, and new parent law firm, SDD Global is poised to achieve its dream. We want to revolutionize the way legal services are delivered to companies and individuals all over the world."

STAR LITIGATOR AND FORMER COCHRAN FIRM PARTNER, KWARMA VANDERPUYE, BECOMES SENIOR VICE PRESIDENT AND GENERAL COUNSEL AT SDD GLOBAL SOLUTIONS

We are pleased to announce the addition of Kwarma Vanderpuye to our team as Senior Vice President and General Counsel. She is a graduate of Princeton University and Howard Law School, and she also brings extensive and well-known U.S. legal experience to the company. Prior to joining SDD Global, Ms Vanderpuye, a stellar trial lawyer, had been a partner for several years at prominent law firms, heading the litigation department at two of them. Ms. Vanderpuye was the first African-American partner at the New York defense firm of Jones Hirsch, where she won sixteen consecutive defense verdicts in high exposure complex litigation cases, which was a record number for the firm. In addition to her role as trial partner, Ms. Vanderpuye served as the firm’s EEO compliance officer for several years. Following her tenure at Jones Hirsch, she joined The Cochran Firm, New York, as a litigation partner at the invitation of the late Johnnie L. Cochran, Jr. Ms. Vanderpuye’s career path into the world of legal services offshoring stemmed from her first-hand experience with the efficiency, global reach, and cost-cutting benefits of having a competent offshore team assist in trial preparation for a case pending in New York. Ms. Vanderpuye is admitted to practice in the State and Federal Courts of New York and Michigan, including the Sixth and Second Circuit Courts of Appeals. She is an active member of the Association of the Bar of the City of New York and the International and American Bar Associations.

“SDD Global is revolutionizing the practice of law with its unique and sound business model,” says Vanderpuye. “We are seeing an increasing number of large corporate clients and others who have a keen interest in the cost-effective alternative we offer to the traditional legal services model. In addition to our solid base in India, which we are expanding, we are also making plans regarding some of the commonwealth countries in Africa as part of our growth.” Ms Vanderpuye, born in Ghana, West Africa, will be actively involved in SDD Global’s Africa expansion phase.

SDD GLOBAL GETS COMPREHENSIVE FUNDING

We are pleased to announce that we have entered into a comprehensive funding arrangement with SFP Priority Co., Ltd., a member of the SFP Group, a leading Asia-based investor. The arrangement underscores the significant demand for, and growth potential of, our high-end legal services offshoring business. The multi-faceted arrangement provides for a first round of USD 2 million, to be followed by subsequent rounds on an as-needed basis. SFP Priority will have two representatives join our board of directors. This arrangement is a key component of our strategic plan to expand and consolidate our position as a leading player in the industry. The funding will be used primarily to (a) hire additional Western-licensed attorneys to augment both our extensive employee training program in India and our range of services offered, (b) expand our global marketing efforts, and (c) step up our ongoing recruitment drive for the best and brightest law graduates in India. Established in April 2006, our company has previously received equity funding from investors from organizations including Merrill Lynch, Cisco Systems, Goldman Sachs, and Barclays Capital, as well as a debt facility from State Bank of India.

CHIEF JUSTICE of INDIA to unveil NEW LEXIS/NEXIS Legal Magazine, with cover story featuring SDD GLOBAL

The Honorable Mr. Justice K.G. Balakrishnan, Chief Justice of India, presided over the gala launch event for Halsbury’s Law Monthly, the new trade magazine for the Indian legal industry, published by LexisNexis and Cyber Media. The cover story for the debut issue, “Beyond the Back Office: How Legal Outsourcing Companies in India Are Moving Up the Value Chain,” was authored by Russell Smith, Chairman of SDD Global Solutions. The cover story amounts to a manifesto for the industry, complete with success stories from various legal outsourcing companies and statistics from expert reports. “The fact that this article was chosen for the cover story reflects a recognition of the growing impact of the Indian legal outsourcing industry, which we believe will become one of India’s biggest economic sectors in the years to come,” said SDD Global’s Head of Operations, Sanjay Bhatia. Click here for a version of the article with footnotes.

SDD Global Presents at Corporate Counsel Exchange on Amelia Island

SDD Global was a featured legal outsourcing presenter at the 2008 Corporate Counsel Exchange, at the Ritz Carlton Hotel on Amelia Island, Florida, February 24-26. There we interacted with general counsels and assistant general counsels at dozens of Fortune 1000 companies, at their request.

SDD Global to Speak at LPO Conferences in NEW YORK AND SAN FRANCISCO

SDD Global Solutions and NewGalexy, together with the leading business conference organization, American Conference Institute, are co-sponsoring “India LPO Summit 2008,” the first international conference on legal outsourcing, to be held January 16-17, at the Grand Hyatt Hotel in Manhattan. SDD Global and New Galexy will lead off the conference with a joint presentation on the current state of the legal outsourcing industry and future opportunities for both clients and providers. Other speakers at the conference will include leading representatives of Pangea 3, American Express, Accenture, Citigroup, Genpact, and major U.S. law firms Kilpatrick Stockton LLC, Kirkland & Ellis LLP, White & Case LLP, and Pillsbury, Winthrop, Shaw, Pittman, LLP. For further information, see http://americanconference.com/Law_Firm_Management/LPO.htm . Meanwhile, on the West coast, SDD Global and three other legal outsourcing providers, together with The American Lawyer Magazine, are co-sponsoring the “Legal Industry Outsourcing Forum” in San Francisco on October 4. In addition to presentations from the sponsors, other speakers will include representatives from major law firms such as Latham & Watkins LLP, Sonnenschein Nath & Rosenthal LLP, and Alston & Bird, LLP. For further information, see www.almevents.com

SDD Global Speaks at Economic Times CONSILIENCE 2007 World KPO Conference

SDD Global (joined by Integreon and Mindcrest) was among the three LPO companies invited to speak at Consilience 2007, the annual world KPO conference organized by the Times of India (the country's leading newspaper), and The Economic Times (the second largest financial daily in the world). The hugely successful event was held at Le Meridien hotel in Bangalore on August 10.

Sony Pictures has hired us for legal research and analysis to help guide the production of their next Hollywood blockbuster film. We have 10 lawyers, on two enthusiastic teams, working full-time on this challenging assignment.

SDD Global has been tapped to assist in the legal defense of the movie, "Borat," which, with worldwide box office receipts now at over $250 million, is the most successful comedy film of all time. We are providing 24-hour litigation support for Sacha Baron Cohen and the makers of the film, defending against litigation in the U.S.

Calvin Klein and Travelers Insurance have hired SDD Global, adding to our client list of some of the world’s leading corporations, including some of the best-known retail brands in the world, several of the largest U.S. book publishers, several major television and motion picture companies, a number of large insurance companies, and as well as prominent law firms.

We have moved into our new, state-of-the-art, three-story building in Kuvempunagar, which can accommodate over 300 employees.

Our next wave of hiring has begun, as we start the process of adding over 250 high-quality professionals to our ranks.