The game of who’s to blame for the complex financial instruments that helped create the global financial crisis has been under way for just over four years now. Banks, regulators, rating agencies, and individuals have all taken their turns on the hot seat. Law firms, on the other hand, have largely escaped scrutiny.
But that could be changing. During the last week of January, two law firms found themselves on the receiving end of complaints over their involvement in financial transactions that unraveled during the recession. On January 25 Orrick, Herrington & Sutcliffe was slapped with a malpratice suit by a Dallas-based investment company over losses from a collapsed loan deal. And five days later Greenberg Traurig was sued by an investor in a now-bankrupt private mortgage broker and real estate loan provider.
