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Bankruptcy Law

Ex-client sues Shearman, says firm didn’t warn of $76M pension shortfall before deal closed

Posted Apr 3, 2013 4:37 PM CDT
By Martha Neil

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A former client has sued Shearman & Sterling, contending that the law firm failed to warn him about $76 million in underfunded pension liability before a deal went through as part of a corporate reorganization plan concerning two of his companies.

Newsprint magnate Peter Brant alleges that as a result of this bad legal advice, he lost tens of millions of dollars in assets when one of his two companies was sold as part of the restructuring plan, thus making it liable for the $76 million when the sale closed, the Connecticut Law Tribune reports.

Brant's malpractice suit, which also names partner Douglas P. Bartner as a defendant, was filed in superior court in Stamford, Conn.

Shearman & Sterling did not immediately respond to the legal publication's request for comment.

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