Curtis, Mallet-Prevost, Colt & Mosle has settled with a former client that claimed the firm’s negligence from a late filing in a government investigation led it to lose $20 million.
Attorneys for the firm, and the former client, Chinese manufacturer Shenzhen Kehuaxing Industrial, filed dismissal papers July 10 that refer to a confidential settlement agreement.
The agreement provides “for the payment of an agreed-upon nominal amount in order to resolve all claims arising out of the dispute,” according to court papers, which also say Curtis made no admission of wrongdoing.
The suit was brought in 2015 by Shenzhen Kehuaxing Industrial, a Chinese company manufacturing stainless steel sinks and Artisan, a New York company that imported and sold Shenzhen’s products in the United States.
Shenzhen and Artisan had retained Curtis in an antidumping investigation by the U.S. Department of Commerce. After Curtis failed to meet an April 2012 deadline to file a questionnaire for the investigation, the Commerce Department imposed antidumping duties on Artisan, Shenzhen and other Chinese exporters and producers.
Although the department later determined that they were entitled to a lower antidumping rate, Shenzhen and Artisan alleged in a malpractice suit that distributors and customers had canceled orders and terminated their business.
In a ruling last year, Manhattan Supreme Court Justice Eileen Bransten maintained the company’s malpractice claim, but dismissed the malpractice claim of individual plaintiffs, including the CEO and two other shareholders of Shenzhen (NYLJ Aug. 25, 2016).
Dean Cho, a Manhattan solo practitioner representing the plaintiffs, confirmed that the parties had settled but declined to comment further. Michelle Rice, a partner at Kaplan Rice representing Curtis, declined to comment.