Lawsuit Should Have Alerted Others of Dreier Issues, Former Colleague Says

Those who practiced at attorney Marc Dreier's law firm before it imploded late last year apparently had little or no warning of the financial issues he faced.

But they would have been forewarned had they read a 2002 lawsuit filed by a former colleague at a small plaintiff securities practice he ran earlier, that former colleague now says. "All they had to do was read my lawsuit," attorney William Federman of Oklahoma tells the National Law Journal. "Not only should it have raised red flags, it should have shot off flares."

In the case, which Federman says was settled on terms favorable to himself, he accuses the then-partner of Dreier Baritz & Federman of failing to provide an accounting and failing to return client funds to Federman.

Additional coverage:

ABAJournal.com: "Marc Dreier Led Sham Law Life for 4 Years, Magazine Says"