Greenberg Traurig has agreed to pay $4.9 million to settle a lawsuit accusing it of malpractice.
First, some background. In 2011, the now-defunct law firm Heller Ehrman sued Greenberg, claiming its negligence contributed to Heller’s spiral into dissolution in December 2008. According to Heller, when it hired Greenberg in June 2008, Greenberg didn’t disclose that it also separately represented Bank of America Corp. (BofA), which for 17 years had lent Heller millions of dollars. Heller claimed Greenberg failed to discover that BofA had terminated its security interest in Heller before the law firm dissolved.