Significant Law Firm Settlement Payments in Aiding & Abetting Cases
Law firm are starting to generate some headlines – and material payments – in some of the cases alleging that law firms aided and abetted corporate malfeasance. LAW360 includes an article that opens with news of to significant settlement payments:
"Law360, New York (June 20, 2012, 10:10 PM ET) — Greenberg Traurig LLP agreed to pay $61 million Wednesday to settle claims that it aided an alleged Ponzi scheme that bankrupted two companies and led to $900 million in losses when the real estate bubble popped, while a $26.5 million settlement with Quarles & Brady LLP earned preliminary approval.
Two certified classes of plaintiffs who bought into mortgage lender Mortgages Ltd., which was represented by Greenberg, and securities dealer Radical Bunny LLC, which was represented by Quarles & Brady, asked U.S. District Judge Frederick J. Martone to approve a settlement ending all claims between the plaintiffs and Greenberg in a $61 million deal.
The Mortgages class consists of 975 investors who ponied up $600 million and the Radical Bunny class comprises 770 individuals who forked over $197 million.
“While we have always stood behind the work we did in this matter, entering into this settlement is a sensible step for the firm,” Greenberg spokeswoman Lourdes Brezo Martinez said."