News and Events for Attorneys and Executives

Law Firm Not Liable for $1.5B Loan Gaffe

By on June 30, 2017 in Banking & Finance, Commercial

Image by C_osett

Entities that loaned General Motors $1.5 billion before it went bankrupt cannot sue GM’s law firm, Mayer Brown, for accidentally canceling the collateral on the loan, the Seventh Circuit ruled.

Courthouse News Service is reporting that the Chicago-based appeals court ruled Wednesday that Mayer Brown has no duty to GM’s lenders because it did not represent them.

The suit was based on a statement drafted by Mayer Brown that mistakenly terminated the collateral securing a $1.5 billion loan. That mistake resulted in the lenders’ loans becoming unsecured, putting their claims behind the claims of secured creditors, writes Lorraine Bailey.

Read the Courthouse News article.


Join Our LinkedIn Group