Two firms involved in legal malpractice claim

Florida companies or individuals that hire law firms to represent them should always be able to trust that their attorneys will operate with their clients' best interests at heart. That, unfortuntately does not happen in some situations leaving people or businesses facing some serious challenges.

This is what one former executive of a company based in Fort Lauderdale is accusing two different law firms of. The story starts three years ago when the then-chief executive officer hired one law firm to handle its initial public offering. The following year, the man asked the same firm to help the company raise additional funds. This led to the involvement of hedge funds and eventually lawsuits were initiated involving the funds and some of the investors. The original firm referred the executive to another firm for help with this litigation.

In retrospect, the first firm is now being accused of not properly briefing the executive on the deals with the hedge funds. This failure to provide adequate counsel is said to have contributed to the demise of the business. In addition, this firm is alleged to have directed the man to another firm that would not highlight to the company this problem, thereby protecting itself. As such, the second firm is also accused of malpractice for failing to alert the client to the inappropriate actions of the first firm.

What may seem to some to be a minor transgression or omission can all too easily snowball into much larger problems. Florida residents who have been misguided by their legal counsel might want to seek options for compensation.

Source: Daily Business Review, "Simpson, Thacher, and Kasowitz Benson Sued For Malpractice," Monica Mesa, December 22, 2107

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