Seattle-based Davis Wright & Tremaine has been sued by the receiver for a former client, Sunwest Management, which developed a now-ailing empire of senior living facilities. The court-appointed receiver for the company and its affiliates, Michael Grassmueck, alleges that Davis Wright helped Sunwest engage in a Ponzi scheme, and is seeking more than $400 million in damages.

In May, Davis Wright was targeted as a defendant in a similar suit brought by Sunwest investors, as noted in a prior Am Law Daily article. Those investors also sued K&L Gates and Thompson & Knight, which are not named in the receiver’s complaint. The SEC has also brought an action against the company, which led to the appointment of Grassmueck as the receiver to pursue claims against third parties on behalf of the companies’ investors and creditors.

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