Northern District of Texas district judge David C. Godbey has found the Biglaw firm of Proskauer Rose has to stand trial in the case brought by the receiver in the Stanford Financial Ponzi scheme.
Robert Allen Stanford was convicted in 2012 of charges surrounding a $7 billion Ponzi scheme, and the appointed receiver is charged with protecting the interests of the legitimate creditors. As part of that effort, a lawsuit was brought against Proskauer and other Stanford attorneys alleging they were negligent and aided and abetted Stanford’s fraud in breach of their fiduciary duties.
Judge Godbey ruled Proskauer is not protected by the attorney immunity doctrine in a suit by the receiver and the trial should go forward. Proskauer appealed, but Judge Godbey called that appeal “frivolous and dilatory.”
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As you might imagine, yesterday the firm filed an emergency motion for stay:
“Proskauer requests an emergency stay from this court to prevent the district court from depriving Proskauer of its right to an orderly appeal to resolve serious issues of attorney immunity.”
The receiver has previously settled claims with Hunton & Williams — to the tune of $34 million — for their representation of Stanford.
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Kathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).