Proskauer Rose agrees to pay $63M to resolve investor claims in Stanford's Ponzi scheme
Proskauer Rose has agreed to pay $63 million to resolve the claims of investors who lost money as a result of a Ponzi scheme by R. Allen Stanford, whose companies were represented by a former partner at the firm.
Former Proskauer partner Thomas Sjoblom was accused of helping delay a U.S. Securities and Exchange Commission probe of Stanford’s conduct. Sjoblom had also worked at Chadbourne & Parke, which agreed in 2016 to pay $35 million to resolve claims by investors and a court-appointed receiver.
A Proskauer spokesperson told Bloomberg that the law firm believed it would have ultimately prevailed, but litigation would have likely lasted for many more years and the firm determined it was best to put the matter behind it.