July 27, 2007
Law Firm Sued Over its Role in Collapse of Refco
Thomas H. Lee Partners, which purchased a controlling interest in failed commodities firm Refco in 2004, is suing the law firm Mayer Brown for allegedly misleading it about Refco's financial condition. Building on allegations in the bankruptcy examiner's report, Lee alleges that the law firm handled bogus loan transactions for Refco that concealed customers' losses and misled Lee when it was conducting its due diligence. While ordinarily the lawyers for the seller owe no duty to the buyer, the complaint alleges that Mayer Brown made misstatements to Lee. WSJ, A Big Backer of Refco Sues.
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