Good things about Cadwalader, Wickersham & Taft: profits per partner of $2.9 million, third behind Wachtell and Cravath. Visits from Cameron Diaz.
Bad things about Cadwalader: bed bugs. And $70 million malpractice lawsuits.
The indefatigable Anthony Lin has this report, in the New York Law Journal:
As the global slowdown in the market for mortgage-backed securities threatens a core practice area of Cadwalader, Wickersham & Taft, the New York law firm is also wrestling with a $70 million legal malpractice suit brought by a major issuer of such securities….
Nomura Asset Capital Corp., a U.S. division of Japan’s largest securities firm, filed suit against Cadwalader last October in Manhattan Supreme Court over documents the law firm drafted for a 1997 securitization transaction in which Nomura pooled 156 commercial mortgages worth around $1.8 billion.
We’ll spare you the details of the suit, since they’re boring and kinda hard to follow. CWT is represented by Cravath, and they’re moving to dismiss.
More discussion — including talk about associate layoffs, triggered by the generally grim climate for mortgage-backed securities work — after the jump.