Monday, June 19, 2006

Refco Settlement Derby May Be Heating Up

According to this Dow Jones story (via a new potential defendant has emerged in the Refco securities class action - the law firm of Mayer, Brown, Rowe & Maw LLP.

That nugget was contained in papers filed last week by the Lead Plaintiffs in support of their motion to modify the PSLRA discovery stay. As noted in that brief, although Mayer Brown is not currently named as a defendant, the firm:
acknowledges that it is the "Law Firm" described in the Amended Complaint as being responsible for negotiating and documenting the fraudulent "loan" transactions that form the core of the fraud at Refco.
Indeed, lead plaintiffs note that as Refco's primary outside law firm for more than a decade, Mayer Brown:
was intimately familiar with Refco's operations and structure and - importantly - prepared some of the documents that lie at the heart of this case.
Because documents from Mayer Brown will (as noted above) be pertinent regardless of Mayer Brown's status as a party or non-party to this action, Lead Plaintiffs simply state here that Mayer Brown's confidence that it is insulated from liability is, in a word, optimistic.
Sounds like Mayer Brown may be getting in line to join the Refco settlement derby.

As noted in this National Law Journal article from January, Mayer Brown is actually already involved in the litigation, having been named (along with partner Joseph P. Collins) as a defendant in at least one of the many cases consolidated with the class action, Teachers' Retirement System of Illinois v. Lee, No. 1:05-cv-10403. A copy of the Teachers' Retirement System complaint is available on the Lerach Coughlin website, here.

For those that were wondering, Cattle Network describes itself as "the premier website for any and all information needed in agri-business on a daily basis," with information "on everything from crop insurance to basis to employee benefits to foot rot to the daily boxed beef report." And no, I couldn't find the story on any other public website.

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