Defense Lawyers See Bonanza From Lehman, Bear
Written by Mark J. Astarita, Esq. on Tuesday, October 28, 2008Bloomberg is reporting what securities defense attorneys have experienced - the demand for defense counsel is on the rise. The article focuses on the criminal side of the equation, and the civil side - in regulatory investigations and arbitrations - is running right along with it.
Great quote from Herb Stern, Joseph Nacchio's lawyer:
The community is angry, and that anger cuts across all economic class lines,'' Stern said. ``The community, the mob, is looking for heads. A defense attorney has to bring sanity and realism to protect the client against scapegoating.''
Bloomberg.com: Exclusive: "Defense Lawyers See Bonanza From Lehman, Bear, Other Collapses"
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2 comments: Responses to “ Defense Lawyers See Bonanza From Lehman, Bear ”
By erwiest on Wednesday, 29 October, 2008
As a one-time FINRA arbitrator and sometimes advocate for investors in broker-dealer cases, I have no doubt that defense lawyers are chomping at the bit to present the customary vigorous (and expensive) responses to claims coming out of this market break. I wonder, however, what types of claims (other than screwed up executions and margin liquidations) will be successful coming out of this environment.
Unlike the 2000 break, which was concentrated in the tech sector and raised questions concerning research integrity, this has been a broad crash. I don't see how many suitability claims (except where there was gross overconcentration in individual stocks or financial issues) can succeed coming out of the present scenario. Claims involving proven misrepresentations concerning individual securities may succeed--but I don't see a bonanza coming to the "public investor" bar just because the Dow has dropped 40%.
By Mark J. Astarita, Esq. on Monday, 03 November, 2008
See my post immediately above this one. Claims are being filed regarding the sales of Lehman notes, and I expect we will see similar claims regarding the securities of the other financial firms.