Businesses Hit Firm With $45 Million Malpractice Suit
The New York Law Journal by Christine Simmons - April 23, 2012
Six business owners are suing Morrison Cohen and one of its partners for $45 million in damages, claiming in a malpractice suit that they overlooked critical language in a transaction. The plaintiffs suing Morrison Cohen and Brian Snarr, chair of the firm's compensation, benefits and employment department, are small to mid-sized business owners who sold shares of their businesses through employee stock ownership plan transactions, according to the lawsuit filed last week in Manhattan Supreme Court.
Read the complaint.
The plaintiffs sought to defer capital gains and capital gains taxes on the sales by reinvesting the proceeds in U.S. corporate bonds. The bonds were insured against default by certain financial guaranty insurers. Morrison Cohen represented and advised the plaintiffs during the transaction, the suit says.
Shortly before the closing of the transaction, the language in related documents was altered, creating a new default event tied to the ratings of the polices issued to insure the bonds, not simply the bonds themselves, according to the suit. The change in the documents "created a fundamental risk" in the reinvestment transaction that the plaintiffs didn't agree to and the law firm should not have allowed it to be inserted, the suit said.
David Rose, a partner at Pryor Cashman who represents the plaintiffs, declined to comment. Morrison Cohen managing partner David Scherl said his firm will not comment on pending litigation "other than to confirm that we will vigorously defend against the claims made."
CLICK HERE TO READ THE COMPLAINT
Cat fight and a lot of legal fees. In the end, the non-lawyer will lose everything.
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ReplyDeleteThis is just another scam by a bunch of greedy lawyers. Big money will be paid out by the insurance companies. Everyone loses except the lawyers, including the insurance companies. That's the rule.
ReplyDeleteDid you think your lawyer works for you? Did you trust your lawyer? Do you think the lawyer suing the other lawyers is any different? Wanna buy a bridge with guaranteed toll revenue?
ReplyDeleteDont you just love it when low life scum attorneys fight! It kind of gives you some faith in the corrupt system!
ReplyDeleteIt is all part of their scam. Like a skit. All planned in advance. No fiduciary.
ReplyDeleteAttorneys policing themselves borders on a monopoly. I sued Morrison Cohen and getting ready for a jury trial, my attorney forgot to put in the rebuttal to their expert.To get to trial, you must have a rebuttal to the opposing expert witness.But since they wear the same uniform, after three years of fact finding and depositions, Stephen J. Bury Esq. deliberately threw my case.
ReplyDeleteJudge Ling Cohan ruled, indicating that both my wife and I signed a note.. there was no loan signed by my wife. Ling-Cohan indicates, that a certain break in affected my inventory and I was unable to fulfill my orders. In the same ruling, my sales and profit margin went up. Based on tax returns. You can't make this stuff up, the sales are black and white, on an appeal Judge Louis Gonzalez basically mirrored Judge Ling Cohan but both judges indicate that my attorney did not put in my expert witness which is the appropriate standard of care required under the circumstances. Here are two judges indicating that the case is fixed. Morrison Cohen has a tendency to misrepresent and steal their clients money. Based on Federal Judge Jerome Fellers signed order, they were supposed to pay $360,000.00 in taxes from an I.O.L.A account. Cuomo is involved with the firm, knows about the complaint as State attorney and as Governor, he's involved with the firm and so is former Mayor Michael Bloomberg. Three signed letters to Bloomberg, several phone conversations with Andy...crickets all you hear is crickets.
Senator Kristin Gillibrand, multiple phone conversations, additional information...nothing. Peter King, One Police Plaza, Ray Kelly, Eric Dixon Esq. was asked to stand down. Anthony Bianchi Esq., John Macron Esq., I could name another 100 attorneys. Bottom line, the Federal Judge awarded their fees, they could have appealed. The firm took money in Federal Court without a signed order or fee application. They took third party money. And everyone wondering about Al Sharpton's way of doing business. Morrison Cohen,Bloomberg, Governor Coumo has broken more laws than Al Sharpton.
That's based on FOX, I wrote to Fox, to Roger Ailes in fact.I hope to hear from him. Usually Fox reaches out to Al Sharpton for a comment but he never responds. Maybe Roger Ailes can reach out to Bloomberg and Cuomo. Don't be surprised if they don't return Fox's call. No comment, pleading the fifth, usually means you're dirty and guilty. All they had to do is show me where my wife's signature was on the loan.
To put Bloomberg and Cuomo in the same category as Sharpton, to pillage my two corporations and steal tax money. That's what Fox keeps reporting about Sharpton. I have the US Trustee Linda Riffkin and a signed Federal order.
Please see my Google review of Morrison Cohen and Jeffrey P. Englander Super Lawyer.