Legal Industry News

Appeals Court Says ‘See No Evil’ Approach Can’t Shield Law Firm in Investor Suit

Source: ABA Journal Top Stories
A “see no evil, hear no evil” approach can’t shield a law firm from an aiding-and-abetting claim in an investor suit, a New York appeals court has ruled. The appeals court reinstated the claim against Lum, Drasco & Positan, formerly known as Lum, Danzis, Drasco & Positan, the New York Law Journal reports. The court said the investor plaintiffs, who lost $1.9 million in a real estate investment company that turned out to be a $22 million Ponzi scheme, had adequately alleged lawyers at the firm had actual knowledge of the fraud. The plaintiffs had claimed Lum Drasco lawyers were…
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