A group of investor clients of Stanford Financial Group has filed a class action against New York’s Proskauer Rose and Washington, D.C., partner Thomas V. Sjoblom. The lawsuit, filed Aug. 27 in the U.S. District Court for the Northern District of Texas in Dallas, alleges the law firm and Mr. Sjoblom participated in a massive investment fraud that led to the intervention by the U.S. Securities and Exchange Commission and the appointment of a receiver for the investment firm. The class action follows last week’s guilty plea by former Stanford Chief Financial Officer James Davis. In it, Mr. Davis appeared to implicate Stanford’s outside attorney, Mr. Sjoblom, in a conspiracy to thwart an investigation by the SEC into Stanford’s alleged fraud. Mr. Sjoblom was assistant chief litigation counsel in the SEC’s enforcement division prior to entering private practice.

Proskauer Rose issued a statement that said the lawsuit was “legally flawed and factually erroneous.” The firm continued, “There is no basis whatsoever for any claim that Proskauer, which functioned as defense counsel in a regulatory investigation, bears any responsibility for the fraud allegedly inflicted upon investors.” A call to Mr. Sjoblom was not immediately returned. - Leigh Jones

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