Two former clients have sued Milbank, Tweed, Hadley and McCloy, charging the firm with malpractice, breach of fiduciary duty and breach of contract over the firm’s work on the financing of a failed Nebraska ethanol project.
In a complaint filed Tuesday in state court in San Francisco, Medley Capital LLC and Fourth Third LLC allege that Milbank lawyers failed to secure a first, secured interest in the ethanol project for the former clients. The firm’s work on the matter occurred from March 2007 to March 2009. The ethanol project subsequently went into bankruptcy in August 2009.
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