MoFo Settles Texas Suit Over Billing Practices
The plaintiff companies alleged in a Texas lawsuit that 34 different timekeepers at Morrison & Foerster billed 669 hours over two months at a cost of $484,321.
May 13, 2019 at 04:45 PM
3 minute read
Morrson & Foerster (Photo: Jason Doiy/ALM)
Morrison & Foerster has settled a lawsuit in Texas state court filed by a group of former clients who alleged the firm engaged in “egregious overbilling.”
Houston lawyer Peter Taaffe, who represents the plaintiffs, confirmed Monday that his clients, who sought more than $1.5 million in damages, came to an agreement with Morrison & Foerster in mediation. Terms of the settlement in Synergies v. Morrison & Foerster were not disclosed.
“The parties have come to a mutual settlement and the terms of the settlement are confidential. The plaintiff parties also add that 'Morrison & Foerster provided plaintiffs with valuable legal work, and plaintiffs appreciate its counsel,'” Taaffe, of counsel at The Buzbee Law Firm, said in a written statement.
On May 9, the plaintiffs filed a notice of nonsuit with prejudice as to all of the plaintiffs' claims against Morrison & Foerster.
Tom O'Brien, a partner at Baker Botts in Dallas who represents Morrison & Foerster, did not immediately respond to a request for comment. Neither did a spokesman for the firm, which has 17 offices in the U.S., Asia and Europe.
The plaintiffs, including Firestar Diamond International and its owner, jewelry designer Nirav Modi, initially filed a complaint Feb. 13 in U.S. District Court for the Western District of Texas. Before Morrison & Foerster filed a response, the plaintiffs voluntarily dismissed that complaint. They refiled it on Feb. 26 in state district court in Travis County.
In the Travis County petition, the plaintiffs alleged they hired the firm to assist them in winding down companies, but instead of doing the work efficiently and promptly and keeping them informed, the firm concentrated on liquidating assets and transferring money to the firm's client trust account.
“MoFo then expended an exorbitant and excessive amount of time, primarily on matters that had little to do with winding down the entities. In the course of two months, MoFo had 34 different timekeepers bill 669 hours at a cost of $485,321,” the plaintiffs alleged in the petition.
They further alleged that they paid the firm $30,000 in retainers, and the lawyers collected $625,319 that was deposited in the firm's trust account, for a total of $655,319. However, the plaintiffs alleged, the firm “unilaterally decided to pay itself from these funds” leaving only $170,998 in the trust, and it ultimately only returned $117,305 to them.
The plaintiffs, which include Firestar and related companies, maintain a principal place of business in Austin, according to the petition. They also include Synergies Corp., AVD Trading and Firestar Group.
Plaintiff Modi is facing allegations by India's Punjab National Bank of engaging in a bank fraud scheme, reportedly involving at least $1.8 billion, according to news reports.
The plaintiffs brought breach of fiduciary duty, negligence, fraud, breach of contract and theft causes of action against Morrison & Foerster.
Morrison & Foerster had not filed an answer but filed a motion to dismiss on forum non conveniens grounds, arguing that the litigation should be resolved in New York because lawyers in the firm's New York office did the work for the plaintiffs.
Read More
MoFo Hit With Texas Lawsuit Alleging 'Egregious Overbilling'
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Conspiracy Suits Against Quinn Emanuel, Roc Nation Moved to Federal District Court
JCPenney Seeks Return of More Than $1.1M From Jackson Walker For Bankruptcy Work
3 minute read
Ex-Appellate Court Judges Launch Boutique Focused on Plaintiffs Appeals
2 minute readTrending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
