A putative class action charging Leeds, Morelli & Brown with striking a collusive settlement of employment discrimination claims with Nextel has been brought back to life.
The U.S. Court of Appeals for the Second Circuit vacated the dismissal of claims by a class of Nextel employees who allege Leeds Morelli breached its fiduciary duty by accepting a deal with Nextel in which the firm would be paid $2 million to persuade its clients to settle en masse, $3.5 million more on a sliding scale as claims were settled and another $2 million to work as a consultant for Nextel for two years once the claims were resolved.
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