A federal judge has handed down a massive $2 million sanction against two of the most prominent law firms in the United States, Kirkland & Ellis and Skadden, Arps, Slate, Meagher & Flom. The ruling was by U.S. District Judge Marc Treadwell and stems from a pattern of deception and misconduct that he ruled occurred during a high-stakes fraud case involving the electronic health record software provider eClinicalWorks. According to The Atlanta Journal-Constitution, the judge ordered the firms to pay the fine within 10 business days. However, this isn’t your typical legal fine. Treadwell, who presides over the federal court in Macon, Georgia, specified that the money will be used for “promoting instruction on the subjects of ethics and professionalism in Georgia’s accredited law schools.” Reuters reported that the firms agreed to the payment after the judge determined they helped their client hide records and make false representations throughout the litigation. Essentially, masking evidence unfavorable to eClinicalWorks. In a June order that preceded the final fine, Treadwell described the behavior as “a widespread, long-running cover-up.” Naming and shaming According to Reuters, Treadwell specifically pointed to Richard Bernardo of Skadden and Geoffrey Wyatt of Kirkland & Ellis as the lawyers responsible for the misconduct. The judge noted that these attorneys repeatedly hid evidence and lied about it to both the court and the plaintiffs. Reuters also noted that these are extremely high-profile firms. Kirkland & Ellis currently holds the title of the highest-grossing law firm in the country, with Skadden sitting at number five. Law firms Kirkland & Ellis and Skadden Arps have agreed to pay $2 million in sanctions after a federal judge in Georgia determined they helped a client they were defending in a False Claims Act lawsuit hide records and make false representations. https://t.co/dNpkSceaLk— Reuters Legal (@ReutersLegal) September 3, 2026 AJC noted that the case itself was filed back in 2018 by three computer and information technology specialists, Alex Permenter, Eric Rodighiero, and Chris Wheeler, who provide services for medical practices in Middle Georgia. They alleged that eClinicalWorks fraudulently claimed federal certification for its software. The plaintiffs reportedly argued that this deception caused medical providers to unwittingly submit false Medicare and Medicaid claims totaling tens of millions of dollars. The company, which has operated since 1999, denied these claims and fought hard to get the case dismissed, but the judge eventually found that “eCW repeatedly lied to the [plaintiffs] and the Court for strategic gain.” The situation became even clearer when you look at the specific evidence that was suppressed. Treadwell mentioned, per AJC, that the hidden documents included consulting work that confirmed some of the plaintiffs’ allegations. This evidence directly contradicted the opinions of a key expert witness the defense was using. According to Reuters, the judge specifically singled out Bernardo and Wyatt for relying on an expert whose testimony they knew was false. Attorneys with Skadden, Arps, Slate, Meagher & Flom LLP and Kirkland & Ellis LLP are sanctioned $2 million for withholding evidence and discovery abuse in a recently settled False Claims Act suit against health software company eClinicalWorks LLC. https://t.co/xXGqej7r9S— Bloomberg Law (@BLaw) September 4, 2026 The judge reportedly noted that it was inexplicable that the defense “went to extraordinary, and improper, lengths to maintain the fiction” that they had no duty to disclose the information. Per Reuters, Treadwell wrote in the order that eClinicalWorks’ misconduct and the “misconduct imputed from its lawyers—constitutes subjective bad faith.” According to AJC, the current $2 million sanction wasn’t the first fine in this trial. Treadwell had already ordered eClinicalWorks to cover over $1.5 million in fees and costs that the plaintiffs incurred just trying to get the information they were rightfully owed during discovery. Interestingly, last year many law firms were sanctioned in a presidential executive order, with one DC firm committing to $40 million in equivalent services. Those that made deals, however, saw a client exodus. Rob Snyder, lead counsel for the plaintiffs, told AJC that this sanction is the largest he has ever seen. He noted, “It’s reasonably rare that a court will sanction a lawyer and this is the first time, at least in my career, that I’ve ever seen the judge instruct a defense law firm to pay a monetary sanction to fund legal ethics education.” He also added, “Essentially we spent two years fighting to get information that should have been given to us.” The outlet noted that Snyder expressed his gratitude that the court held the lawyers accountable for their actions. The case eventually settled midtrial at the end of July, though the terms of that settlement remain confidential.