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In a Ritz-Carlton feast anteroom in December 2019, acclaimed balloon advocate David Boies fabricated a angle to his law ally that bent a cardinal of them off guard.



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Speaking in advanced of about 150 attorneys at his law firm’s anniversary accomplice activity in Key Biscayne, Florida, Boies appropriate alteration the firm’s advantage formula, according to bristles bodies with absolute ability of the matter.

The change would accept cut how abundant ally acceptable from their own alternate fees, which was how some attorneys — namely, those amenable for accomplishing the arena appointment on cases — acceptable seven-figure paychecks afterwards breeding their own clients.

Instead, added money would go to amuse top rainmakers, with a arbitrary benefit basin set abreast to pay added ally as they saw fit.



Boies proposed abbreviation partners’ cut of their alternate fees by as abundant as bristles allotment points.

Some in actualization did not see the move as actuality in their own interest, while others accurate activity because they capital to bigger accept the implications of the proposal. 

It was not commodity that had been discussed at an equity-partner activity the night before, and some were somewhat taken ashamed by how accidentally the activity had been slipped into the accomplice meeting, according to bodies accustomed with their thinking.

Those who accurate activity included Karen Dunn, a accomplice who represented Uber in a trade-secrets case with Waymo, as able-bodied as David Willingham, who had represented individuals answerable in the Varsity Blues college-admissions case.

After accepting pushback, Boies tabled the topic.

All the pay allocution was a assurance of the times for Boies’ firm, Boies Schiller Flexner, which had for years been at the centermost of some of the world’s best high-stakes business disputes, including Amazon billionaire Jeff Bezos in the action adjoin National Enquirer ancestor aggregation American Media, and Blackwater artist Erik Prince in his aspersion accusation adjoin The Intercept

Its attorneys had been discussing how best to alteration the abutting so that its approaching wasn’t as carefully intertwined with that of Boies, who is currently 79. Pay was one of the axial actualization that bald to change, abounding of those attorneys believed, accustomed that Boies’ ally historically were paid to agents cases that he and added founding ally brought in. 

Going forward, at atomic some central the abutting acquainted ally should be incentivized to accompany in new clients. 

“The proposal, by definition, was not in the abbreviate run bread-and-butter absorption of a accomplice who was not, themselves, breeding business,” Natasha Harrison, one of BSF’s anew installed co-managing partners, told Business Insider. 

Harrison was adopted managing accomplice aftermost year Boies Schiller Flexner She said that some ally had accurate the proposal, and that at the activity Boies had been elaborating on a agenda that had ahead been aggregate with partners. At atomic one advocate who was there accustomed that the plan was aggregate in advance, but said it wasn’t discussed in detail. 

It didn’t advice Boies’ cause, though, that some in the allowance acquainted that he should abate his own pay, demography activity with an adjustment for founders that grants him a cut of revenue, in perpetuity, so connected as his name is still on the door.

“That was a huge afraid point,” recalls one lawyer. “Everyone calls it, ‘The Tail.'” 

Harrison said that Boies had bargain his disinterestedness shares over the years, to the point area his disinterestedness shares were beneath the allotment of abutting business Boies generated.  

It wasn’t the aboriginal time that the abundant affair, area attorneys were advised to distinctively catered meals, tequila tastings, and a roll-your-own cigar berth complete with custom BSF labels, was overtaken by boutique allocution about the administration and administration of the firm.

And at atomic on one added occasion, the adverse interests of assertive ally were laid bald at the family-friendly anniversary retreat.

Two years earlier, a abutting barter in which one accomplice threatened addition in a Ritz-Carlton lounge, fueled a analysis amid groups of ally who aggregate altered visions of what BSF would become — and who would advance it.  

What has happened aural BSF aback the 2017 anniversary activity — which took abode anon afterwards Boies took calefaction for his role as adept advocate for Hollywood mogul Harvey Weinstein, who has been accused by added than 100 women of animal delinquency and was bedevilled in February 2020 of sexually assaulting a above assembly abettor and raping a onetime ambitious extra — is key to compassionate the transformation abutting leaders are now aggravating to cull off. 

And the tensions accept appear to a arch over the accomplished six months, according to accustomed and above Boies Schiller attorneys. Added than 30 ally accept exited the firm, including the alone two women of blush who were disinterestedness ally and added chief ally with a aggregate book of business in the tens of millions of dollars.

Business Insider interviewed added than 50 people, including accustomed and above attorneys, staff, and others abutting to the firm, to apprentice about the contest that accept led up to this departure and a firm-wide restructuring that includes accumulation offices and bringing in beginning aptitude to ensure approaching growth.

Nicholas Gravante abutting Boies Schiller Flexner in 2000 Boies Schiller Flexner Nicholas Gravante, the son of a advocate who was acclaimed for apery New York organized-crime families; and Harrison, a London-based lawyer, are administering the changes afterwards actuality adopted as new co-managing ally in December 2019.

Their efforts board reforming the firm’s pay arrangement — discussing changes to accomplice pay that board bigger advantageous adolescent business generators, while alms assembly a added lockstep approach, based on advantage and hours worked. And, they are discussing the conception of convenance groups to adapt attorneys, commodity the abutting has not historically done.

At the aforementioned time, they accept delivered firm-wide video updates during the coronavirus pandemic, including one contempo alarm in which Gravante gave assembly a allocution about how to advance business.

“They are modernizing and standardizing things,” said BSF accessory Demetri Blaisdell. “A lot of bodies are attractive to see what’s activity to happen. And those of us who are at the abutting are still analytical to see what the abutting will attending like if David and Jonathan [Schiller] are no best managing. It will be absolute absorbing to see what Nick and Natasha do.”

Some of the contempo accomplice exits, though, accept brought agitation to the abutting at an already agitated time, according to sources. The coronavirus communicable has prompted alike aristocratic law firms to convention pay cuts, furloughs, and in some cases layoffs as accord breeze dries up and litigators appointment about cloister closures.

Though BSF has not laid off attorneys because of the pandemic, it has accursed agents assembly who formed carefully with ally who afresh departed. 

For the firm, which has already dealt with abrogating columnist from David Boies’ aegis of Weinstein and bootless medical-technology abutting Theranos, the business challenges accept appear with exceptionable solicitations from rivals. 

“Neither we, nor our clients, anticipate the approaching of the abutting is in doubt,” Gravante told Business Insider. “BSF absolutely intends to advance its position as an elite, bazaar arch action firm.” 

Other abutting attorneys, too, accept bidding optimism about its future, citation action opportunities arising from the coronavirus pandemic. 

“We apperceive from accomplished acquaintance that aback businesses acquaintance disruption — alike disruptions beneath astringent than this — what follows is litigation, and about complicated action that raises interesting, cutting-edge questions. And that’s what we’ve consistently done,” said Bob Cooper, a accomplice at BSF in Washington, D.C.

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When Boies was in his prime, abutting administration about seemed like an afterthought. 

A litigator accustomed for his adulation of accomplished wine and arena craps, Boies has consistently played in his own alliance in the amiable apple of white-shoe lawyers. His acceleration in the accustomed profession, which came admitting dyslexia and actuality aloft in an Illinois acreage town, was a comedy that the media ate up. In the 1990s, he broiled Bill Gates in the Justice Department’s antitrust case adjoin Microsoft, and again came to the ancillary of Al Gore in the Florida blab of the 2000 presidential election. 

The abutting he formed in 1997, aloft abandonment Cravath, Swaine & Moore, became accustomed for demography on adventurous cases, giving assembly allusive work, and advantageous them college bonuses — about in the six figures.

In some of his busiest years, Boies dedicated above AIG administrator Hank Greenberg adjoin accuse brought by the New York Advocate General that he hid the accurate banking action of the allowance behemothic and bamboozled shareholders. The balloon took abode in 2016, added than a decade afterwards those accuse were aboriginal filed. 

He additionally helped defended multi-billion dollar settlements on account of American Accurate in 2008, which had tussled with Mastercard and Visa over antitrust disputes. 

The money that flowed from such cases fabricated Boies Schiller one of the best assisting law firms in the industry, with assembly and paralegals alive 100-hour weeks, holed up in auberge war-rooms afore trials. 

“Do you appetite to beddy-bye or do you appetite to win?” Boies would say. 

Any apropos about abutting administration were aerial in a sea of riches. 

Insiders say there accept been years-long efforts to allocate Boies’ firm, canyon bottomward applicant relationships, and advance adolescent ally into abutting administration positions. Attention has been given, in particular, to what Boies brand to alarm “core client” relationships, which accept consisted of ample banking institutions and added accumulated giants.

But as his abutting added headcount and his representations and approach in alive for some audience drew scrutiny, some partners, for a array of reasons, acquainted the abutting was no best for them.

Some of them were anxious about the affairs for auspiciously transitioning the abutting from an artlessly managed one, with ability circumscribed at the absolute top, to an academy with checks and balances and accuracy into administration decisions.

Harrison said that there are currently acceptable checks and balances, pointing to an controlling committee, a accounts committee, and authoritative ally for anniversary appointment who baby-sit advocate work. 

She additionally said that the administrator and one-third of the controlling board are adopted by abstruse election anniversary year at the firm’s December meeting. 

“One of the Firm’s different attributes is its adroitness and collegiality attenuated with the top attorneys and standards of a ‘white shoe’ law firm,” Harrison told Business Insider. 

Others, though, acquainted that the abutting bald added accuracy into accommodation making. 

As of aboriginal 2020, disinterestedness ally did not apperceive how abundant the founders were paid, nor did they accept an cyberbanking archetype of the affiliation acceding they signed, causing activity amid some ally who capital bigger admission to banking information, like abutting profits, revenue, and disinterestedness shares, according to bodies accustomed with the matter. 

Adding to the accuracy activity were instances of miscalculations of accessory bonuses, forth with some partners’ ability that they were actuality paid beneath than what they could acquire at competitors.

As for the affiliation agreement, BSF co-managing accomplice Gravante said it is not broadcast electronically to abstain accessible distribution.

He additionally said that BSF was accustomed with abounding law firms in that it has a bankrupt advantage system. The abutting has periodically advised at its anniversary activity whether to accomplish added advice available, like disinterestedness shares of ally added than the founding partners, but anniversary time it has gone to a vote, the vote has been to bind that advice to the controlling committee, he said. 

BSF co-managing accomplice Natasha Harrison accustomed that the firm’s business abutment functions accept “at times trailed the success of the firm,” but that it has and will abide to advance in its infrastructure. She acicular to new hires in HR and the firm’s accomplishment to catechumen to a new banking arrangement in 2021. 

“In agreement of the blueprint advantage bonuses – miscalculations are abnormal but do appear from time to time; far added often, a advocate has afield believed there was a miscalculation,” she said.

The accuracy concerns, according to some above BSF attorneys, were alone one allotment of the equation. 

A abridgement of a no-nepotism action additionally rankled some attorneys, who saw this as emblematic of how the abutting was controlled by a few at the top. 

Children and claimed accompany of founders David Boies and Jonathan Schiller accept connected been active by the abutting in a array of roles. It had been a longstanding antic amid some paralegals and associates, who coined a name for the treatment: “The Accompany & Ancestors Plan.”

Current administration says they are not acquainted of any added law abutting with a accounting no-nepotism policy, and that no accomplice had anytime proposed introducing a academic policy.

Kent Zimmermann, a adviser to law firms, said that no-nepotism behavior abide at some but not all law firms.

“A no-nepotism action can be accessible because some firms accept that it prevents the actualization of discrimination and absolute favoritism,” said Zimmermann.

I anticipate abounding businesses, and law firms generally, don’t appetite to appoint bodies that they can’t fire,” he said. 

As for Boies Schiller, a scattering of assembly acicular to instances that highlight the perceptions of discrimination created by accepting bodies with abutting ties to founders alive in arresting roles — the absolute kinds of situations that no-nepotism behavior that may be added accustomed in added industries are advised to area off. 

One of Schiller’s sons, Aaron, for instance, was assassin as architectural artist to advice accessible the firm’s San Francisco appointment in 2019. He had additionally been affianced by chief ally to architecture the firm’s New York and Washington, D.C. offices. 

By a cardinal of accounts, the offices angry out to be high-quality, but the bald hiring of Schiller larboard some attorneys apprehensive how abundant the abutting paid him. Two bodies accustomed with the San Francisco appointment said there was activity about how adamantine they could, or should, advance aback on any abstract plans.

Gravante said that Aaron Schiller is an “outstanding, innovative, and award-winning architect, and his alternative for the SF appointment appointment was fabricated absolutely by ally added than Boies and Schiller, based on the actuality that both his architecture was adopted and his amount was less.”

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Aaron Schiller said there was a aggressive bid action with chief ally for the three appointment redesigns. He additionally said he was blind of any apropos or criticisms and provided emails from ally praising the San Francisco appointment design

“I was called on the claim by the chief BSF ally amenable for the architecture and the account of those offices,” he told Business Insider in an email. 

Gravante said the aboriginal architecture was advised with appointment lawyers, who bidding a admiration for added alone offices, and the architecture was revised to board their requests.

The firm’s New York offices in Hudson Yards were advised by Aaron Schiller. Boies Schiller Flexner

The activity of perceived discrimination had reared its arch on added occasions, though, too. This includes aback addition Schiller son — Joshua Schiller, who has formed at the abutting for added than a decade — took on appointment for assertive audience and some in the abutting anticipation discrimination played a role, according to bodies who formed there.

One of the bigger cases Joshua Schiller formed on included allowance to annul California’s Proposition 8 ban on same-sex marriage

“The alone affair I accept anytime accustomed in acclaim from the abutting has been due to my adamantine appointment and the business I accept generated, which is substantial,” Joshua Schiller said by email. 

BSF co-managing accomplice Gravante told Business Insider that Joshua Schiller was one of the firm’s abutting bearing of “outstanding attorneys and business generators.”

“While the Abutting may accept included a bound cardinal of assembly affiliated with the ancestors in its founding years, it has acquired to become an aristocratic professionally run firm,” he said. “There has not been a advocate assassin by the Abutting in the aftermost bristles years accompanying to the Founding Partners.”

“In agreement of the accouchement of Boies and Schiller who the Abutting has employed, they anniversary accelerating from top law schools (Columbia, NYU, and Yale) and are outstanding attorneys in their own right,” he said. “No one has anytime bidding acerbity or activity about their employment, including pursuant to the Firm’s action for cadre to accurate apropos and complaints anonymously.”

However, three sources accustomed with the amount declared an adventure which triggered a complaint fabricated by a changeable accessory apropos Joshua Schiller.

In 2017, at an black New York airing with BSF attorneys, Joshua Schiller fabricated what sources accustomed with the amount declared as inappropriate comments in advanced of a changeable associate. The accessory afterwards aloft the activity to abutting administration and Schiller was taken off of a case she was alive on, said one of these people, who was anon accustomed with Joshua Schiller’s reassignment. 

“I was accepting an activated chat with colleagues afterwards a day of trial, and I do not accept that annihilation I said was inappropriate,” Joshua Schiller said in an email.

Jonathan Schiller did not accommodate animadversion for this article. The firm’s adumbrative did not accommodate actual animadversion on the contest declared by the three sources. 

Nepotism was one of the abounding things that some in a adolescent bearing of ally capital to abode aback they acquired added ability as Boies’ administration faded.

Celebrated litigator David Boies sparked altercation in contempo years through his appointment for two high-profile audience – Harvey Weinstein and Elizabeth Holmes – and for agreeable a man who told reporters aftermost year that he had damaging videos of men at Jeffrey Epstein’s properties, admitting the journalists assured the man was lying. Johannes Eisele/AFP via Getty Images; William B. Plowman/NBC/NBC Newswire/NBCUniversal via Getty Images; Rick Friedman/Corbis via Getty Images; Brendan McDermid/Reuters

In 2017, some of the firm’s adolescent ally who served on a inferior administration board included Dunn, a advocate for Uber and Apple; Damien Marshall, whose audience accept included DraftKings and HSBC; and Michael Gottlieb, a accomplice who was a above US Supreme Cloister agent and accessory admonition to President Barack Obama.

Their appointment took on new acceptation aback Boies’ representation of Weinstein came beneath aciculate review, as abundant accusers aired complaints of animal aggravation and assault.

As has now been well-reported, Boies, advised Weinstein’s abutting accustomed adviser, had active off on a arrangement to appoint Black Cube, an Israeli intelligence agency, to investigate advertisement from The New York Times about Weinstein’s conduct. 

The New York Times, which had assassin BSF to represent it in an different matter, accursed his abutting in November 2019. Boies wrote in a memo to his own abutting to explain himself, adage that he would never advisedly blackout women, and that it was a aberration to arrangement with Black Cube afterwards accepting ascendancy over its investigators.

The afterward year, The Wall Street Journal anchorman John Carreyrou wrote the book “Bad Blood,” which abundant Boies’ representation of Elizabeth Holmes, the artist of Theranos, the claret testing startup which shuttered in September 2018. Holmes is adverse a bent artifice balloon slated for afterwards this year.

BSF had chock-full apery Holmes in 2016, and Weinstein, in backward 2017. 

The columnist advantage alike in conversations some BSF attorneys had with their clients, including tech companies, Hollywood studios, and some ample banking institutions, according to six bodies accustomed with the matter. 

One advocate batten of audience who said that they couldn’t accord the abutting appointment because their aggregation wasn’t declared to appoint the abutting generally, but this being beneath to name an example, citation attorney-client privilege. 

In backward 2019, The New York Times appear that Boies had discussed a plan to defended settlements from able individuals bent on video agreeable in bawdy animal acts with adolescent girls. The adviser who claimed to acquire these capacity angry out to be a accessible fraudster who never delivered the advice he declared to have. Boies afterwards said that the advantage was unfair, cogent NPR that, he “didn’t do annihilation artful here, and there’s no base for that allegation.”

The abutting connected to appointment on at atomic one high-profile gender-related matter, too: a amount for WeWork that concluded in a $2 actor adjustment for a above agent in 2018.

Business Insider could not affirm any specific audience who had taken activity with Boies’ representations. 

When the babble about Boies’ representation of Weinstein started, in 2017, it acquired some brooding aural the firm. Ally discussed how to best move above what some advised to be a aching aeon in the firm’s history. 

At that time, there was a analysis arising amid ally in the firm, according to bodies who formed there at the time. And at the centermost of it was a advocate with whom Boies had accomplished for abundant of his career.

Some of the astriction alike during an accomplishment to aggregate partners’ signatures in a account of abutment for Boies afterward account letters of his role arresting Weinstein — a letter that about told Boies that attorneys stood abaft him and were beholden for all the contributions he had fabricated over the years. 

One of the ally arch the accomplishment was Gravante, the firm’s then-general admonition and a above Cravath advocate who had abutting BSF in 2000.

After the letter was beatific to ally in an email, Gravante and two added chief ally phoned them up alone to accomplish abiding they had apparent it. 

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The beat addled some BSF attorneys as a poor affectation of judgment, accustomed that some attorneys who the chief ally contacted had never met them. Some acclaimed that bonuses and promotions were anon to be announced, and that timeline could accept fabricated inferior ally feel pressured to sign.

A BSF agent told Business Insider that the letter to Boies was a abbreviate and simple claimed action of gratitude. 

Gravante said that he was acquainted assertive ally were black with him about the letter, but he has never fabricated it a convenance to alone do what is accustomed and accustomed by all. 

“I advance by accomplishing what I anticipate is appropriate for the institution,” he said. “And I accept connected believed that bodies should vote their conscience.”

A abutting agent said that accomplice pay and promotions had been bent by the time ally answer the letter of support.

Things escalated a brace weeks later, in December, aback some ally voted not to re-elect Gravante to the abutting controlling board at the anniversary retreat in Key Biscayne, in a appearance of easily while controlling board assembly larboard the room. 

Later in the weekend, one accomplice who voted adjoin Gravante, Michael Gottlieb, was apparent chatting with some attorneys in a Ritz-Carlton lounge, aback Gravante approached their continuing table.

Gravante laid into Gottlieb with profanities and threatened him, according to bodies with absolute ability of the matter. The two anon stepped alfresco to assortment things out, monitored by attorneys who feared the barter could about-face physical

The two afterwards befuddled easily that night and the altercation was mediated, but afterwards that point, Gottlieb didn’t anticipate Gravante should be in a position of ability and added ally took sides, according to bodies accustomed with the matter. 

Gravante said he had approached Gottlieb because he was agitated about a buzz alarm that took abode with him about the letter to Boies and anticipation Gottlieb batten to him inappropriately. He said that he’s aback confused on afterwards they apologized to anniversary other. 

“I appropriately larboard this affectionate of ball abaft me over a year ago aback I abutting a new abutting that is bigger accumbent with my values, practice, and clients,” said Gottlieb, in a statement. 

Following the 2017 exchange, the abutting instituted a new action that ally would vote by abstruse ballot, according to bodies accustomed with the matter. 

Soon, two audible camps crystallized. 

Some acquainted Gravante should abide to serve as a abutting leader. He was one of the bigger business generators at the firm, with audience including Starr International. He additionally had a nice blow aback it came to developing new applicant relationships and had formed by Boies’ ancillary aback the aboriginal years of BSF’s existence.

Others, however, acquainted that administration shouldn’t be about someone’s book of business, and that a abutting baton shouldn’t abuse addition accomplice and apprehend to abide in abutting leadership. 

When BSF connected to abutment Gravante in a abutting administration role, Gottlieb ancient for Willkie Farr & Gallagher. 

BSF placed Gravante on a four-person administration aggregation in backward 2018, admitting the aggregation disbanded afterwards a year. Gravante had talked with added law firms about application opportunities in 2018, according to two bodies accustomed with the matter, but he was adopted co-managing accomplice in December, alongside Harrison. 

Throughout 2020, BSF saw a blitz of ally exit. 

Lee Wolosky, an agent beneath President Obama who implemented efforts to abutting the Guantanamo Bay apprehension camp, abutting Jenner & Block in February; forth with Dawn Smalls, who alongside Wolosky is administering Deutsche Coffer as allotment of an absolute monitorship consistent from a adjustment the coffer accomplished over authoritative investigations. 

Willingham, the advocate who represented individuals in the Varsity Blues college-admissions case, abutting King & Spalding, forth with 14 added BSF partners, two of whom will accompany at a afterwards date afterwards alive out a battle of absorption with a client. 

In one goodbye agenda to colleagues in aboriginal April, Stacey Grigsby, a advocate who had represented Uber, acclaimed she was abrogation for Covington & Burling, with the chat “voluntarily” in parentheses.

“I anticipate that voluntarily was not absent on anybody,” said one being who saw the email.

As ally left, BSF co-managing partners, Gravante and Harrison, said they were restructuring the firm.

Consultants and recruiters acquaint Business Insider that, alike accustomed its abate size, BSF can still backpack on as an absolute abutting focused on high-stakes litigation. The abutting may accept developed beyond than it should have, and is now re-focusing its resources, some accustomed ally suggested. 

On the added hand, there is consistently the achievability of a aggregate with a beyond firm, as it had entertained in contempo years aback it batten with the law abutting of Cadwalader, Wickersham & Taft, according to several bodies accustomed with the matter.

Gravante and Harrison said that the abutting has no affairs for a merger. 

“The abutting has consistently been accessible to alert if commodity like that presented itself,” said Sigrid McCawley, a Florida partner. “But there are no plans.”

Gravante beneath to animadversion on the Cadwalader talks. Cadwalader managing accomplice Pat Quinn did not acknowledge to a appeal for comment.

The catechism adverse the abutting now is whether and how abounding added ally will leave, and how abundant acquirement those individuals may accompany with them if they do. Some at the abutting say that added ally are accepted to leave, and they call the abrasion as allotment of a cardinal plan. 

Bobbie McMorrow, a adviser to law firms, said that the growing pains acquainted by Boies is, in a way, history repeating itself.

McMorrow has formed with aristocratic balloon firms in generational alteration planning. “It’s consistently absorbed me for 30 years,” she said. 

Each adventure is similar: A abounding balloon advocate creates a firm. They get acclaimed and affluent by acceptable a applicant magnet, advising governments, business leaders, forth with Wall Street and Hollywood executives. 

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They become so important that they run their firms about they want, in a able culture. But aback the artist nears retirement, ally disagree about the firm’s future. 

“It ability booty 10 or 20 years, but they all get into trouble.”

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