Akin Gump Narrows Malpractice Claims
Posted Sep 28, 2007 9:19 AM CDT
By Debra Cassens Weiss
Akin Gump Strauss Hauer & Feld has fewer claims to defend in a $4.4 billion suit filed against the law firm by former hedge fund managers.
Judge Bernard Fried of Manhattan dismissed five causes of action in the suit because they duplicated legal malpractice claims, the New York Law Journal reports. The dismissed counts included negligence, negligent misrepresentation and breach of fiduciary duty.
The suit by former Veras managers James McBride and Kevin Larson claims Akin Gump wrongly advised them that trading mutual funds after market close was legal. The $1 billion hedge fund closed after it paid more than $36 million in penalties in a late trading investigation.
Among the remaining causes of action is an allegation that the law firm fraudulently concealed conflicts of interest. The judge said fact questions remain concerning the validity of the firm’s conflict waiver.