Posted Jul 21, 2011 08:00 pm CDT
A motion to disqualify Kasowitz Benson Torres & Friedman from continuing to represent the plaintiff insurer in a hard-fought lawsuit against multiple hedge funds contends that the law firm contacted a represented individual working for one of the defendants in the case.
Multiple hedge fund defendants in the New Jersey state-court case brought by Fairfax Financial Holdings Ltd. of Toronto say law firm investigators posing as managing directors of a sham hedge fund continued to contact an analyst working for one of the defendants even though he had a lawyer and had asked to be left alone, reports Bloomberg.
But Kasowitz Benson partner Mitchell Schrage calls the motion meritless and says “it is nothing but an effort to distract attention from the fact defendants have no valid defense to Fairfax’s [racketeering] and other claims or the enormous damages flowing from those claims.”
The lawsuit contends that hedge funds which had bet the insurer’s share price would go down conspired to spread negative information about Fairfax.