A $55 million lawsuit by a unit of Cerberus Capital Management L.P. can proceed against Paul Hastings over allegations the firm gave faulty advice on a loan made in connection with a private equity firm's 2008 acquisition of bankrupt retailer Steve & Barry's. A New York judge said the law firm had not shown it accurately advised the Cerberus affiliate on acquisition documents and their impact on the loan's security. The suit paints a picture of the perils of deal financing in the financial crisis of 2008.
$55 Million Suit Against Paul Hastings Over Acquisition Loan Goes Forward
New York Law Journal
August 16, 2010