A Manhattan judge has dismissed claims against Stroock & Stroock & Lavan brought by Brown Rudnick related to a legal malpractice dispute, trimming a defendant from a 5-year-old case that entangled three law firms and investment firm Stonebridge Capital.

A group of investors initially sued Morrison Cohen and a firm partner, Brian Snarr, in 2012, alleging $45 million in damages. The investors, who had retained the firm for a 2007 transaction designed by Stonebridge, claimed Morrison Cohen was negligent in failing to address a new provision in the transaction documents, leading to significant capital gains taxes and other damages.

In 2015 Morrison Cohen brought third-party claims against Stonebridge and its counsel, Brown Rudnick, including for indemnification and contribution. Morrison Cohen claims Brown Rudnick was the primary drafter of the transaction documents and also issued a tax opinion to the plaintiff investors. While the court dismissed claims against Stonebridge, it continued one contribution claim against Brown Rudnick.

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