Mayer Brown escapes Refco shareholder claim
Mayer Brown has moved a step closer towards putting the Refco scandal behind it after a New York judge this week dismissed a securities litigation claim against the law firm and ex-partner Joseph Collins. In a judgment that will be seen as limiting wider liability against professional advisers, Manhattan federal district Judge Gerard Lynch on Tuesday (17 March) offered a broad interpretation of the protection afforded law firms by the Supreme Court's ruling in Stoneridge.He concluded that even if Mayer Brown and Collins engaged in fraudulent activity as advisers to Refco, they were not liable to shareholders unless they made misstatements directly to them. The firm was represented by John Villa of Williams & Connolly, while Collins was represented by William Schwartz of Cooley Godward Kronish.
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