The move, an apparent reaction to the expectations of a surge in bank-related litigation due to prolonged credit turmoil, is a shift for the firm, which called time on legacy
The news comes before the expected judgment next month in a $600m (£308m) case involving JP Morgan Chase. Richards Butler, one of the few top 50 firms willing to act against banks, was understood to have obtained a waiver from Reed Smith to act against JP Morgan on this particular case.
The case sees the firm advising Springwell Navigation on the claim, which has been ongoing since 2001 and relates to advice given by the bank in the 1980s and 1990s. Clifford Chance is advising JP Morgan.
A Reed Smith spokesman said: “We are now a larger firm with a greater number of clients in the financial institutions sector. As a result we make decisions on a case-by-case basis by taking into account current and prospective client relationships across our international network.”
Manches litigation chief Clive Zietman said: “There is a strong view from corporate departments that they do not want litigators suing banks but, if the case is lucrative enough, then some firms may depart from their chosen path.”