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Law Firm's Failure To Carry Out Due Diligence Deemed Inconsequential-Client Knew of Negatives

A New York County Supreme Court Justice dismissed a legal malpractice claim prior to trial this summer finding -- So What? An investment banking firm that served as an underwriter for a public offering of stock, retained a law firm to conduct due diligence and investigate the issuing corporation. The law firm hired a private investigation firm which discovered that the issuing corporation had sold off its major assets and was worthless. An associate at the firm emailed the investigative report to the client and the partners at his firm. Apparently, no one read the report and the law firm issued a positive report on the issuing corporation's stock offering. The deal closed, the issuing corporation ripped off the investors and everyone got in trouble.

The investment banking firm (client) paid out $15 million in fines and penalties to settle an SEC action and sued the law firm for not advising it that the issuing corporation was about to perpetrate a fraud. The Court dismissed the legal malpractice claim because the plaintiff could not satisfy the "but for" causation element. Why? The Court said that since the client admitted it was provided with the critical details of the fraudulent representations of the issuing corporation (when the associate at the law firm emailed the investigative report) they could never prove that the law firm caused the client's damages.

Ronald C. Burke, Esq

Trial Attorney with 30+ Years of Experience Attorney Ronald C. Burke, Esq. has more than 30 years of experience and has focused his career on representing clients in cases involving personal injury, medical malpractice and legal malpractice. He is a seasoned trial lawyer and has won many seven-figure settlements and verdicts for his clients over the years, including many case victories listed among the largest in the history of the state. He has been featured in the news and is a regular lecturer for the New York County Lawyers Association, as well as having lectured before the New York State Bar Association. Ronald is also an attorney with Kelner & Kelner, a New York personal injury law firm. Awards and Accolades Mr. Burke's awards and accolades are many. Among them, he has been included in New York Super Lawyers® each year since 2010, and he has received the highest-possible AV® Rating from Martindale-Hubbell®. Verdict Search, a part of the New York Law Journal, frequently recognizes his notable successes after winning some of the highest settlements and verdicts in past years. He was also featured in their list of the "Top New York Verdicts of 2011" and "Top New York Settlements of 2012." He is a member of the New York State Bar Association and is licensed to practice law in the U.S. District Court for the Southern and Eastern Districts of New York, as well as before the United States Supreme Court. When Attorney Burke is not handling legal malpractice cases, he is highly involved in the local community. He is a member of the Village of Rockville Centre Volunteer Fire Department, has served on the local school board and as Chairman of the local Zoning Board. Learn more about Attorney Burke and how he can skillfully handle your malpractice case by contacting the Law Offices of Ronald C. Burke, Esq. right away to schedule your complimentary case evaluation. Our firm is here to help! Contact a New York Legal Malpractice Attorney Our firm provides each client's case with thorough preparation and aggressive representation, ensuring that you win the best possible results for your case whether it is settled or goes to trial. As a seasoned trial lawyer, Mr. Burke can provide the strong and relentless representation you need to establish negligence in a legal malpractice case and to recover any damages you may have suffered. Our firm can recover compensation for pre-trial and trial malpractice, violations of fee arrangements, loss of income, pain and suffering, and much more. Contact us today!

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