Suit by Ex-Refco Customers Who Claim $500 Million in Losses Is Dismissed

It certainly was not good news for Mayer Brown when partner Joseph Collins was convicted in July of conspiracy, securities fraud and wire fraud arising from his work as an outside lawyer for the fraudulent brokerage firm Refco Inc. (NYLJ, July 13). But as far as the firm is concerned, things could be worse. So far, Mayer Brown has succeeded in beating back nearly every attempt to hold it liable in civil suits for the damage caused by Refco’s collapse in 2005.

In the latest victory for the firm and its outside counsel, John Villa of Williams & Connolly, Southern District Judge Gerard Lynch last week dismissed a suit brought on behalf of some of Refco’s former brokerage customers who claimed to have lost more than $500 million. The suit had been brought by Marc Kirschner, who, as part of Refco’s bankruptcy proceedings, was appointed trustee for a so-called “private actions trust” and tasked with pursuing claims for creditors and shareholders. Mr. Kirschner is represented by Quinn Emanuel Urquhart Oliver & Hedges.