In a securities class action settlement case in Boston, Labaton Sucharow demanded US District Judge Mark Wolf be recused after comments he made regarding the case. The federal judge is reviewing the firm’s billing records over billing inflation claims but Labaton Sucharow cited a “serious conflict” raised by statements from the judge which the firm said implied that the New York law firm was engaged in 'public corruption.'
Whilst Labaton Sucharow of New York City is under scrutiny for misconduct, the firm alleged that Justice Wolf had shown bias against it in the case in which the firm represented customers who claimed they were shortchanged by State Street Bank of Boston. Wolf appointed a retired federal judge last year to investigate whether Labaton and other law firms had inflated their $75 million in fees for the case. A federal judge on Wednesday said he was considering a sealed report’s recommendation that he require three law firms to repay a “significant amount” of the $75 million in fees they received as part of a $300 million settlement with financial services provider State Street Corp.