A New York judge has tossed a $10 million malpractice suit against Greenberg Traurig.
A former executive of American Defense Systems Inc. (ADS) claimed Greenberg Traurig—the company’s securities counsel—failed to have certain restrictions removed from the company’s stock following ADS’s initial public offering in 2008. In his suit, Thomas Cusack accused the law firm of malpractice, negligence and breach of fiduciary duty. Cusack said the restrictions the firm failed to remove prevented him from selling 900,000 shares of the company’s shares.
But yesterday, a judge in Manhattan tossed the case, saying the law firm has an attorney-client relationship with ADS, not Cusack specifically. She also said the three-year statute of limitations for negligence had already expired when Cusack brought the suit in July 2011.
Read more about this suit on Thomson Reuters.
Read more recent InsideCounsel stories about law firms in the news: