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« CFIUS Reform | Main | CEO's Personality Cult Promotions Bite Back »

September 7, 2007

Lawsuit Against Deal Lawyers

The private equity firm that bought Refco, the company that collapsed with cooked books, is suing Refco's attorneys in the deal, Mayer, Brown, Rowe & Maw, for complicity in the fraud.  This suit bears close watching.  The PE firm alleges that Mayer Brown "knowingly" allowed its client to lie..."  Deal lawyers have become experts at taking fees from questionable clients and careful limiting their exposure to criticism when a client tanks ("CYA" in the the trade).  We shall see how a judge handles it.

September 7, 2007 in Lawyers | Permalink

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