Penny P. Reid

PENNY REID is a partner in Sidley’s Commercial Litigation and Disputes practice and also serves in the Office of General Counsel of the firm. Penny focuses on internal investigations and taking to trial complex civil litigations in state and federal courts throughout the country, including securities fraud, class actions, employment litigations and bankruptcy litigations. Penny has represented companies, board committees, and bankruptcy-created trusts in internal investigations and reviews, including investigations related to alleged Foreign Corrupt Practices Act and other statutory violations, accounting and executive issues, and potential claims of creditors. As a result of her accounting background, Penny is often called upon to handle matters involving accounting disputes and related internal investigations for major corporations. Penny also has extensive experience handling large domestic and international arbitrations before the American Arbitration Association (AAA) and the International Chamber of Commerce (ICC). She has argued appeals before the United States Court of Appeals and the Fifth District Court of Appeals in Dallas.

Examples of Penny’s recent engagements include several high profile cases for a wide range of companies in various industries, including:

• Representing U.S. public company with investigations spanning several Latin American jurisdictions, including Mexico and Argentina, into potential violations of the Foreign Corrupt Practices Act.
• Representing public companies in investigations conducted by the Consumer Financial Protection Bureau.
• Representing companies and partnerships in restructuring litigation including Highland Capital Management, LP.
• Advised a Special Committee and conducted an investigation on behalf of an international energy company on FCPA issues in Mexico and Colombia.
• Representing a publicly traded company in an investigation of the causes of restatement of financial statement;
• Representing a publicly traded energy company in an employment workplace investigation;
• Representing a publicly traded company in an investigation of Sarbanes-Oxley non-compliance;
• Representing a publicly traded company in an investigation of FCPA claims;
• Representing a publicly traded energy company in a shareholder derivative litigation;
• Serving as trial counsel for a top 10 mortgage company in a misappropriation of trade secrets and non-solicit employment litigation and arbitration proceedings;
• Representing Helmerich & Payne, Inc., Helmerich & Payne International Drilling Co. in various indemnity and personal injury claims;
• Serving as trial counsel for Vivendi in a large securities class action and related individual securities actions;
• Serving as lead trial counsel for Crane in the business valuation arbitration, In the Matter of the Arbitration between Gerald J. Gartner, Claimant and Crane & Co., Inc.;
• Serving as litigation counsel for General Growth Properties, Inc., Lehman Brothers, and General Motors in matters relating to their bankruptcy filings; and  
• Serving as lead trial counsel in In re: Footstar, Inc., a bankruptcy litigation against Kmart. 

In recognition of her litigation success, the Dallas Association of Young Lawyers has presented Penny with its 2020 “Outstanding Mentor Award.” She has been named a “Best Lawyer” in the area of Commercial Litigation (2013–2026) and specifically in the area of Commercial Litigation — Alternative Dispute Resolution (2013, 2015) by The Best Lawyers in America®. Penny also has been acknowledged since 1997 as a “Super Lawyer” in Business Litigation and Securities Litigation in the New York and/or and Texas editions of Super Lawyers directory. Her experience was further recognized by Benchmark Litigation as a “Litigation Star” in the areas of Commercial, Professional Liability, and Securities (2015–2017; 2020–2026).

Prior to returning to Dallas, Texas in 2012, Penny lived and practiced in New York, NY for eight years.

A sampling of Penny’s representative experience prior to joining Sidley includes:

• In re: Vivendi Universal, S.A. Securities Litigation
  Trial counsel for Vivendi in securities class action and related individual securities actions.
• In re: Delphi Corporation, et al.
  Litigation counsel for General Motors Corporation in bankruptcy litigation.
• THL Funds, v. Grant Thornton
  Litigation counsel for THL Funds against Grant Thornton involving fraud and accounting malpractice claims.
• In re: Managed Care Litigation
  Counsel for one of the largest class action/multi-district litigation (“MDL”) proceedings involving a class of approximately 500,000 physicians alleging claims for violations of, among other things, RICO, ERISA and state prompt pay statutes.
• In re: Footstar, Inc. et al.
  Lead trial lawyer in bankruptcy litigation against Kmart, Inc.
• Lorillard, et al v. Settling States
  Lead trial lawyer in domestic arbitration regarding payments required under Master Settlement Agreement.
• The American Medical Association, et. al. v. UnitedHealth Group
  Counsel for United Healthcare in class action involving breach of fiduciary, breach of contract and ERISA violation claims.
• The Boeing Company v. Hughes Electronics Corporation
  Lead counsel representing Hughes Electronics in a purchase-price adjustment arbitration against Boeing resulting from the sale of Hughes’ satellite business to Boeing. Boeing sought adjustments of over $650 million dollars in the arbitration, which was conducted by KPMG LLP.
• CFS v. Arthur Andersen LLP
  Counsel for Andersen in matter involving 13 separate securities fraud actions in a MDL proceeding resulting from Andersen’s representation of Commercial Financial Services. This matter involved complex issues related to the securitization of certain credit card loans. Penny oversaw the preparation of the various motions to dismiss and argued the motions before the court.
• The Raytheon Company v. Hughes Electronics Corporation
  Lead counsel for Hughes Electronics in a purchase price adjustment arbitration resulting from the sale of Hughes’ defense business to Raytheon. Raytheon asserted a number of accounting and legal theories entitled it to an adjustment of million of dollars.
• Coates v. Heartland
  Counsel in Securities class action. Motion to dismiss all defendants granted.
• Kvaerner U.S., Inc., d/b/a Kvaener E&C v. Hylsa, d.a. de C.V.
  Lead counsel in international arbitration before the I.C.C. involving breach of contract action.
• ADAPT v. Arthur Andersen LLP
  Lead Counsel for Arthur Andersen in a misappropriation of trade secrets case involving accounts receivable outsourcing.
• Mitsumi Electric Co., Ltd. vs. Swan Magnetics, Inc., et al.
  Counsel for Mitsumi in a misappropriation of trade secrets case. Case settled favorably for Mitsumi after plaintiffs case was presented at trial.
• AAF McQuay, Inc. v. Richard W. Snyder
  International arbitration.
• Whirlpool Corporation v. Wirekraft Industries, Inc.; Wirekraft Industries, Inc., Third-Party Plaintiff v. AMP, Inc. Third Party Defendant.
• Numerous Confidential Internal Investigations.

• Penny is a Fellow of the American Bar Association, a member of the Bar Association of the City of New York, and the Texas Bar Association, the Institute for Transnational Arbitration, and the Center for American and International Law. She has written and spoken on issues relating to arbitrations and managing complex litigation.
• Penny also is active in numerous public service organizations, including serving as a current member of the New York Chapter Make-A-Wish Advisory Board and a former member of the National Board for the Make-A-Wish Foundation, and is a sustaining member of Attorneys Serving the Community.
• Penny is a Senior Fellow for the Litigation Counsel of America, a Fellow for The Trial Lawyer Honorary Society, and a member of the Trial Law Institute and Diversity Law Institute.
• Penny serves as a 1st VP Board Officer for the Dallas Symphony Orchestra League.