Mayer Brown Rowe & Maw is facing a $245m (£119.5m) lawsuit from a former creditor of Refco, the futures broker on whose 2005 bankruptcy the Chicago-based law firm advised, it emerged yesterday (26 July).
Thomas H Lee Partners (THL) – which acquired a controlling stake in Refco in 2004 – filed a claim in New York alleging that Mayer Brown had failed to inform it of the true state of Refco’s finances.
The news comes after a court examiner in the bankruptcy case found “sufficient evidence” to bring a claim against the firm for “aiding and abetting a breach of fiduciary duty and fraud”.
Lawsuits from other creditors could now follow.
Mayer Brown denies the claims and has instructed Washington DC firm Williams & Connolly, with litigation partner John Villa leading the team.
A statement by Mayer Brown said: “We have reviewed the lawsuit filed against [our firm] by Thomas H Lee and find it without merit. We will defend the lawsuit vigorously and are confident of a positive resolution of the matter.”
THL has instructed Weil Gotshal & Manges, which also advised on the Refco case. Weil Gotshal was cleared of wrongdoing in the court examiner’s report.