Leopold v. U.S. Department of Justice

CourtDistrict Court, District of Columbia
DecidedMarch 20, 2025
DocketCivil Action No. 2019-3192
StatusPublished

This text of Leopold v. U.S. Department of Justice (Leopold v. U.S. Department of Justice) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leopold v. U.S. Department of Justice, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

JASON LEOPOLD, : : BUZZFEED INC., : : Plaintiffs, : Civil Action No.: 19-3192 (RC) : v. : Re Document No.: 54, 56 : DEPARTMENT OF JUSTICE, : : Defendant. :

MEMORANDUM OPINION

DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT; DENYING PLAINTIFFS’ CROSS-

MOTION FOR SUMMARY JUDGMENT

I. INTRODUCTION

On October 24, 2019, Jason Leopold (“Leopold”) and Buzzfeed Inc. (“Buzzfeed”)

(collectively, “Plaintiffs”) filed a Freedom of Information Act (“FOIA”) suit against the

Department of Justice (“DOJ” or “Defendant” or the “Agency”). Currently, the D.C. Circuit has

remanded this case for a third round of summary judgment to resolve a remaining issue: whether

disclosing a redacted First Annual Follow-Up Review Report and appendices (“Monitor

Report”) documenting HSBC’s1 compliance with a deferred prosecution agreement (“DPA”)

would harm the interests protected by FOIA Exemption 8. Defendant argues that the redactions

shield certain law enforcement records and that their release would cause harm, while Plaintiffs

The Court uses “HSBC” to collectively refer to HSBC Holdings plc, the ultimate parent 1

company, HSBC North America Holdings, Inc., a subsidiary of HSBC Holdings plc, and HSBC Bank USA, a subsidiary of HSBC North America Holdings, Inc. seek summary judgment to force the disclosure of a redacted version of the Monitor Report.

This action has undergone multiple rounds of court rulings. For the reasons stated below, the

Court denies Defendant’s motion for summary judgment and denies Plaintiffs’ cross-motion for

summary judgment.

II. FACTUAL AND PROCEDURAL BACKGROUND

A. The Deferred Prosecution Agreement

In 2012, the U.S. Attorney’s Office for the Eastern District of New York and the Money

Laundering and Asset Recovery Section of DOJ’s Criminal Division, filed a criminal

information against HSBC and its subsidiaries, charging them with violations of the Bank

Secrecy Act, including failure to maintain an anti-money laundering program and conduct due

diligence on foreign correspondent bank accounts. Declaration of Margaret A. Moeser (“Moeser

Decl.”) ¶ 12, ECF No. 15-10. The criminal information also charged HSBC with facilitating

financial transactions for sanctioned entities, violating the International Emergency Economic

Powers Act and the Trading with the Enemy Act. Id. Along with the criminal information, the

government immediately filed a DPA, a statement of facts, and a corporate compliance monitor

agreement, requesting that the court place the prosecution in abeyance for 60 months. Id. ¶ 13.

HSBC also reached resolutions with the United Kingdom’s Financial Conduct Authority and the

Federal Reserve over the same conduct. Id. ¶ 14; Declaration of Richard Naylor (“Naylor

Decl.”) ¶¶ 12–18, ECF No. 54-5.

As part of the DPA, an independent monitor was appointed to evaluate HSBC’s

compliance with anti-money laundering and sanctions laws, and to submit progress reports. See

generally Moeser Decl. HSBC committed to “cooperate fully with the Monitor.” Declaration of

Stephen Stich Match (“Match Decl.”) Ex. 1, Attach. B at B-2, ECF 56-4. This cooperation

2 required full transparency, including by “facilitat[ing] the Monitor’s access to HSBC Group’s

documents and resources” and “provid[ing] the Monitor with access to all information,

documents, records, facilities and/or employees, as reasonably requested by the Monitor, that fall

within the scope of the Mandate of the Monitor under this Agreement.” Id. Breach of the

agreement would subject HSBC to prosecution. See Match Decl. Ex. 1 at 18–19. Per the

agreement, the Monitor would submit reports to DOJ, including annual follow-up reviews.

Match Decl. Ex. 1, Attach. B at B-8, B-10–11. Those reports were subject only to a limited

promise of confidentiality, and DOJ retained the “sole discretion” to publish the reports if it

determined that doing so would further “its duties and responsibilities.” Id. at B-11.

B. The Monitor Report

Judge John Gleeson of the U.S. District Court for the Eastern District of New York, who

approved the DPA and oversaw the initial action, ordered DOJ to file quarterly reports about its

implementation. United States v. HSBC Bank USA, N.A., No. 12-cr-763, 2016 WL 347670, at *1

(E.D.N.Y. Jan. 28, 2016) (“HSBC I”), rev’d, 863 F.3d 125 (2d Cir. 2017) (“HSBC II”). In

January 2015, the Monitor issued his first report to HSBC, DOJ, the United Kingdom’s Financial

Conduct Authority, and the Federal Reserve. Moeser Decl. ¶ 15. Judge Gleeson ordered the

government to file the Monitor’s Report in June 2015, but initially kept it under seal due to

requests from both the government and HSBC. Id. A third party moved to unseal the Monitor

Report, and the district court ruled that a redacted version of the Monitor Report could be

unsealed, balancing public access with concerns about future law enforcement efforts.

Declaration of David K. Kessler (“1st Kessler Decl.”) ¶ 4, ECF No. 15-7. The U.S. Court of

Appeals for the Second Circuit later reversed the decision, ruling that the district court had erred

in ordering some of the report to be unsealed. Declaration of Michael P. Grady (“Grady Decl.”)

3 ¶ 17, ECF No. 54-4; HSBC II, 863 F.3d 125, 129. The Second Circuit concluded that the

Monitor Report was not a judicial document and noted concerns that its public disclosure could

harm law enforcement efforts. HSBC II, 863 F.3d at 132, 139. It also noted that members of the

public could request the Monitor Report under FOIA, and “offer[ed] no view on whether any of

FOIA’s exemptions would apply.” Id. at 142 n.7.

C. The FOIA Request and Prior Proceedings

In August 2019, Leopold sent the Executive Office for U.S. Attorneys (“EOUSA”) a

request for a copy of the Monitor’s Report, which the EOUSA initially withheld based on FOIA

exemptions 4, 6, 7(A), 7(C), 7(D), and 8. Declaration of Vinay J. Jolly (“Jolly Decl.”) ¶¶ 1, 4,

ECF No. 15-3; Joint Status Rep., ECF No. 52. The parties filed cross-motions for summary

judgment, and the Court found that Exemption 8 applied to the Monitor Report in full. Mem.

Op. at 20, ECF No. 25. Nonetheless, the Court denied Defendant’s summary judgment, as it was

not satisfied that all reasonably segregable material had been released. Id. at 22–24. After DOJ

conducted a line-by-line review and determined that no portion was reasonably segregable, the

parties then filed a second round of summary judgment motions. This Court granted

Defendant’s motion for summary judgment and denied Plaintiff’s cross-motion for summary

judgment because it found that “Exemption 8 suffices to allow the government to withhold the

[Monitor] Report in full,” though it did not ultimately determine whether Exemption 4 or any

other exemptions also applied. Mem. Op. at 24, ECF No. 47. Plaintiffs appealed the district

court’s decision.

On March 1, 2024, the D.C. Circuit vacated the summary judgment granted to the

Defendant and remanded for further proceedings, instructing DOJ to provide a more detailed

justification for withholding the Monitor Report. Leopold v. Dep’t of Just., 94 F.4th 33, 38–39

4 (D.C. Cir. 2024). Specifically, DOJ was required to explain how the release of any portion of the

Monitor Report could foreseeably harm an interest protected by Exemption 8. Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Federal Bureau of Investigation v. Abramson
456 U.S. 615 (Supreme Court, 1982)
United States Department of State v. Ray
502 U.S. 164 (Supreme Court, 1991)
Students Against Genocide v. Department of State
257 F.3d 828 (D.C. Circuit, 2001)
National Ass'n of Home Builders v. Norton
309 F.3d 26 (D.C. Circuit, 2002)
Juarez v. Department of Justice
518 F.3d 54 (D.C. Circuit, 2008)
Loving v. Department of Defense
550 F.3d 32 (D.C. Circuit, 2008)
People for the American Way Foundation v. National Park Service
503 F. Supp. 2d 284 (District of Columbia, 2007)
Defenders of Wildlife v. United States Border Patrol
623 F. Supp. 2d 83 (District of Columbia, 2009)
Dickstein Shapiro LLP v. Department of Defense
730 F. Supp. 2d 6 (District of Columbia, 2010)
Williams & Connolly LLP v. Office of the Comptroller of the Currency
39 F. Supp. 3d 82 (District of Columbia, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
Leopold v. U.S. Department of Justice, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leopold-v-us-department-of-justice-dcd-2025.