Trauner Cohen Used $1.3M 'Filing Fees' for Firm Expenses, Client Suit Contends
A Georgia law firm used more than $1.3 million that was supposed to have been spent to file over 15,000 debt collection lawsuits for its own expenses, a client lawsuit contends.
The suit, which was filed against Trauner Cohen & Thomas in federal court in Atlanta earlier this month, asserts claims for fraud, breach of contract, breach of fiduciary duty, unjust enrichment, negligence and negligent supervision, says the Fulton County Daily Report.
In addition to damages, it seeks an immediate accounting and attorney fees.
The firm’s managing partner, Russell Thomas, has consented to a temporary restraining order requiring Trauner Cohen to preserve materials related to client NCO Financial Systems’ accounts and guaranteeing access to the law firm’s files and documents concerning the collection matters, the legal publication reports. Thomas says in an e-mail that the law firm is working with NCO to resolve “any disputes or issues.”
