K&L Gates settles US$23m malpractice case

By Neasa MacErlean

30 January 2014 at 07:44 BST

K&L Gates and one of its Pittsburgh lawyers have agreed to pay US$23.7m to settle a malpractice suit - although they did not make any admission of liability.

K&L Gates has agreed to pay US$23.7m to settle a malpractice suit Feng Yu

Lawyer Sanford Ferguson was hired by three members of the board of drinks company LeNature to look at theft allegations. Three years later Mr Ferguson handled an initial public offering, according to court pleadings made by the bankruptcy trustee of the now-defunct company. The former chief executive officer of LeNature and six of his family members and associates are now in prison, serving sentences related to fraud on the company. The bankruptcy trustee alleged that Mr Ferguson was not experienced enough in corporate fraud investigations and that he could have blocked the fraud problems if he had handled the matter differently. K&L Gates and Mr Ferguson declined to comment. Source: ABA


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