MoFo Hit With Texas Lawsuit Alleging 'Egregious Overbilling'
The former client of Morrison & Foerster alleges the firm engaged in a "billing feeding frenzy," in handling the winddown of its companies.
February 14, 2019 at 08:06 PM
5 minute read
The original version of this story was published on Texas Lawyer
A former client of Morrison & Foerster is accusing the firm of “egregious overbilling” in a federal lawsuit filed Wednesday in the U.S. District Court for the Western District of Texas.
Plaintiffs including Firestar Diamond International and its owner, jewelry designer Nirav Modi, allege in the complaint that they hired the firm to assist them in winding down companies, but instead of doing the work efficiently and promptly and keeping them informed, the firm concentrated on liquidating assets and transferring the money to the firm's client trust account.
“MoFo then expended an exorbitant and excessive amount of time, primarily on matters that had little to do with winding down the entities. In the course of two months, MoFo had 34 different timekeepers bill 669 hours at a cost of $484,321.39,” the plaintiffs allege in the complaint.
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