When the U.S. Supreme Court last year rejected the concept of aider and abettor liability in its Stoneridge decision, it was a huge win for law firms that might otherwise be sued by angry investors. But that doesn’t mean that firms are completely insulated from lawsuits like these. On Tuesday, for example, Greenberg Traurig and Quarles & Brady were named as defendants in an investor class action filed in federal district court in Arizona for allegedly aiding and abetting a Ponzi scheme run by a real estate loan company called Mortgages Ltd. and a financing company called Radical Bunny. In an attempt to bypass Stoneridge, the defendants are accused of violating Arizona state securities laws. A copy of the complaint is here.
The case was brought on behalf of 2,000 investors who claim to have lost more than $900 million. The plaintiffs are represented by Richard Himelrick of Phoenix’s Tiffany & Bosco and Andrew Friedman of Phoenix’s Bonnett, Fairbourn, Friedman & Balint.
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