Biglaw Firm Hit With $500 Million Malpractice Suit
Above the Law reports that the Biglaw firm of Reed Smith has been named in a $500 million malpractice lawsuit filed by two defunct Bear Stearns investment feeder funds that Reed Smith represented in RMBS-related litigation.
Plaintiffs claim that Reed Smith failed to bring a case against the rating agencies — Standard & Poors, Moody’s, and Fitch Ratings — in a timely manner, resulting in those claims being dismissed, explains Above the Law senior editor Kathryn Rubino.
From the complaint:
“Reed Smith’s negligent failure to understand New York’s statute of limitations cost the Bear Stearns Funds what Reed Smith identified as a billion-dollar claim against various rating agencies.”
Read the Above the Law article.
