Small Law Firm’s Big Back Office Delayed News of Less Work, Securities Suit Contends

A high-volume Florida foreclosure practitioner has been an early adopter of a businesslike model of law practice, in which a back-office company handles much of the litigation preparation work for his law firm.

Now David J. Stern is also an early example of the potential pitfalls that can arise in such a scenario. Two Ohio investors have sued Stern and DJSP Enterprises, the public company that handles his back-office work, reports the St. Petersburg Times.

The federal lawsuit they filed in Fort Lauderdale contends that the defendants were slow to disclose a substantial decrease in matters being referred by one bank client and a further drop in foreclosure work because of government loan modification programs, the newspaper reports.

Stern, who is 50, didn't reply to a request for comment from the Times.

Related earlier coverage:

ABAJournal.com: "Small Foreclosure Firm’s Big Bucks: Back Office Grossed $260M in 2009"