Cadwalader Wickersham & Taft failed to defeat a malpractice suit brought by Red Zone, an investment vehicle run by the owner of the Washington Redskins, after a state judge found the firm did not prove it gave adequate warning that a side letter it reviewed may not have limited Red Zone’s liability in a proxy fight.
Red Zone, run by Redskins owner Daniel Snyder, sued Cadwalader in 2011 for $13 million claiming the firm botched a letter tied to a fee owed to UBS Securities for its work during a proxy contest for Six Flags Inc. Red Zone filed suit after the Appellate Division, First Department ruled in 2010 that Red Zone owed UBS $8 million.