Business of Law
Ruden McClosky Has Dissolved, But Nearly a Dozen Malpractice Suits Carry On
Posted May 3, 2012 6:00 AM CDT
By Debra Cassens Weiss
South Florida law firm Ruden McClosky filed for bankruptcy protection last November, but the filing hasn’t put an end to 11 malpractice suits against the firm.
The Daily Business Review (sub. req.) has a story on the suits targeting the firm’s two malpractice policies, each with a coverage maximum of $10 million. “The previously undisclosed lawsuits shed light on why Ruden chose to file Chapter 11 bankruptcy,” the story says, “becoming one of the only law firms to do so in combination with a deal to sell assets to another firm, Greenspoon Marder.”
Greenspoon Marder managing partner Gerald Greenspoon told the Daily Business Review he was aware of the malpractice suits. He said his firm required the bankruptcy filing to make sure his firm would have no liability.
At least three of the suits involve Ruden's investment banking division. A lawyer for one of the lawsuit plaintiffs, Andrew Hall, says Ruden hoped to collect investment banking fees as well as legal fees through the division.