Absent a reversal by the U.S. Court of Appeals for the Ninth Circuit, O'Melveny & Myers has finally shaken off a $54 million legal malpractice lawsuit filed by a former client's bankruptcy trustee.

A California federal judge on Wednesday dismissed the remaining claims of trustee Jeffrey Golden, who accused the firm of fraudulently transferring millions of dollars from client Aletheia Research and Management for legal fees just before it filed for bankruptcy.

U.S. District Judge Christina Snyder of the Central District of California found that Golden could not relitigate the issue of legal fees charged by O'Melveny and two of its lawyers, Steven Olson and Jorge deNeve, because an arbitrator had already sided with the law firm on the question.

Snyder in November approved that arbitration award, which absolved O'Melveny of other legal malpractice claims Golden alleged. Golden's appeal of Snyder's ruling is pending before the Ninth Circuit.

The arbitrator "'necessarily decided' the reasonableness of O'Melveny's fees," Snyder wrote, noting that Golden "pursued a claim for legal malpractice based in part on allegations that O'Melveny charged Aletheia 'exorbitant fees and costs,'" and then lost.

Snyder also denied Golden, a partner at Weiland Golden Goodrich serving as Aletheia's Chapter 7 trustee, the opportunity to file an amended complaint, finding it would create an undue delay in the nearly 5-and-a-half-year-old lawsuit and would prejudice O'Melveny.

Snyder also held that allowing Golden to file an amended complaint would be an act of futility—none of the additional facts Golden is alleging would "allow him to overcome the final award's preclusive effects on his preference and fraudulent transfer claims."

In a statement, Gibson, Dunn & Crutcher senior partner Kevin Rosen said Snyder's decision vindicates his client O'Melveny's representation of Aletheia.

"We are gratified that the District Court has rejected the trustee's claims on summary judgment, consistent with the arbitrator's total rejection of all of his meritless attacks and frivolous theories following 12 days of testimony and argument," Rosen said. "O'Melveny provided first class legal services to Aletheia, which saved the company from serious exposure on multiple fronts. It's now time for the trustee finally to accept that the company's subsequent demise had nothing to do with O'Melveny and to move on."

Rosen, based in Los Angeles, chairs Gibson Dunn's law firm defense practice group.

Golden accused O'Melveny and its lawyers of fraudulently transferring at least $9.7 million out of Aletheia for legal fees from 2009 to 2011, as well as being conflicted in their representation of both Aletheia and its principal founder and majority shareholder, Peter Eichler.

Golden accused Eichler of looting his own company as Aletheia stared down a lawsuit from Proctor Investment Managers. O'Melveny represented Aletheia for part of its fight with Proctor; it withdrew from representing Aletheia, and another firm took over in early 2012 after multiple attempts to settle the litigation.

Golden also said arbitrator Gary Feess was biased against him because Feess allegedly blamed Golden for his son's failure to secure summer associate positions at both O'Melveny and Gibson Dunn. But Snyder rejected Golden's contention when she approved the arbitration award in November.

Golden's lawyers at the law firm Brutzkus Gubner did not immediately respond to requests for comment.

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O'Melveny Seeks Dismissal of Remaining $54M Legal Malpractice Suit