A $4 billion damages claim filed against Akin Gump by two former hedge fund managers who claim the firm advised them that late trading was legal is a new development for law firms and shows the risks they face as they try to reap the rewards of representing private investment funds. The funds generate high legal bills, but they're apt to strike back hard if they feel firms have led them astray. In a typical securities class action, a law firm is a minor defendant after deep-pocket financial institutions.
$4 Billion Suit Against Akin Gump Highlights Hedge Fund Representation Risks
New York Law Journal
August 15, 2007