Holland & Knight, one of the country's largest law firms with offices in many U.S. and foreign cities, has settled a suit arising from a client's Ponzi scheme for $25 million. Investors in a hedge fund managed by one of the law firm's clients, Arthur Nadel, claimed that the firm failed to act upon red flags regarding Nadel when it helped him prepare materials to attract investors.
Holland & Knight, according to court papers, was paid only $500,000 for its work for Nadel, which has now cost it $25 million. A California jury found Holland & Knight liable for $34.5 million to investors in real estate developement run by another Holland & Knight client, a verdict that the law firm is appealing.
Source: Reuters
