Shearman & Sterling stood with embattled Puda Coal chairman Ming Zhao after a China stock-watcher accused him of enriching himself though an illicit deal, and the firm stuck around when the SEC and an internal audit committee began to investigate. But after Shearman learned that it had passed along a phony document on Zhao's behalf that was also given to the SEC, the firm bid its client goodbye.

The appellate panel upheld a jury verdict of race discrimination against the military contractor but found jury instructions on punitive damages were flawed.