Freshfields Apologizes After Internal Email Leak
The firm issued an apology after leadership sent disparaging comments about Middle Eastern investors to all employees.
Updated on Oct. 20, 2026 in Remote Work
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Freshfields issued an unreserved public apology after an internal email thread containing disparaging remarks about Middle Eastern sovereign wealth investors was sent to the firm's entire global staff. The comments were linked to discussions regarding a potential spinoff of the company's in-house AI unit.
Why it matters
The firm leadership sought to explore a spinoff of its AI unit to capitalize on high legal tech valuations, but the leaked remarks caused significant offense. The apology follows widespread concern over the firm's relationship with major regional investors.
Legal tech companies are often valued at 25 to 40 times their revenue. The firm maintains approximately 50 fee earners across its offices in Dubai, Abu Dhabi, Bahrain, and Riyadh.
The players
Alan Mason
He is a partner at Freshfields who forwarded the sensitive email thread to the firm-wide distribution list.
Ethan Klingsberg
He is a partner at Freshfields who suggested excluding certain Middle Eastern sovereign wealth funds from AI investment opportunities.
Freshfields
It is a global law firm that maintains offices in multiple Middle Eastern cities including Dubai, Abu Dhabi, Bahrain, and Riyadh.
Abu Dhabi Investment Authority
It is a sovereign wealth fund that received legal advisory services from Freshfields in early 2026.
The details
Partners Alan Mason and Ethan Klingsberg discussed separating the firm's in-house Freshfields Lab AI unit to leverage high industry valuations. Mason mistakenly forwarded the thread, which included suggestions to exclude Middle Eastern sovereign wealth funds from the venture, to the $Freshfields All distribution list.
Timeline
January 2026: Freshfields advised the Abu Dhabi Investment Authority on a continuation-vehicle deal.
Friday, October 16, 2026: Alan Mason and Ethan Klingsberg exchanged the internal emails.
Weekend, October 17-18, 2026: Alan Mason forwarded the email thread to the firm-wide distribution list.
Monday, October 19, 2026: Freshfields issued a formal apology via the Financial Times.
Market Landscape
The firm's desire to monetize its AI unit follows a broader industry trend of law firms attempting to capitalize on high legal tech valuation multiples of 25 to 40 times revenue. This strategy positions firms to potentially outpace competitors by spinning off proprietary technology into independent, high-value corporate entities.
For clients and partners, the incident raises questions regarding the firm's professional discretion and internal security protocols. The public apology serves as an attempt to mitigate potential damage to the firm's reputation with key investors in the Middle East.
The takeaway
Large firms must ensure that sensitive internal strategic discussions are strictly siloed from company-wide distribution lists to prevent reputational damage. When evaluating business spin-offs, leadership must carefully consider how exclusionary comments regarding international stakeholders may impact global business relations.
Further reading
For more on how corporate communication shifts in a global environment, visit the Remote Work section.
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