A Manhattan federal judge has refused to dismiss a $10 million legal malpractice suit against Seward & Kissel, finding that under the firm’s broad terms in an engagement letter, its lawyers might have been expected to conduct due diligence on a party in a deal.

Seward had represented Mitchell Barack in selling his lighting business to ForceField Energy Inc., shortly before ForceField’s chairman was arrested and the company delisted from public trading.

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