Locke Lord offices in Washington, D.C. Photo: Diego M. Radzinschi/ALM Locke Lord, in Merger Talks, Was Ordered to Pay $12.5M Over Alleged Client Fraud. What Does That Mean for the Deal?
Due diligence, done early in merger talks, should prevent any surprises about litigation against a law firm.
May 17, 2024 at 05:48 PM
4 minute read
What You Need to Know
- Locke Lord has agreed to settle alleged claims raised in an SEC action against a client for $12.5 million.
- While a judge approved a receiver's motion to settle the alleged claims, it comes as Locke Lord is engaged in merger talks.
- Consultants who advise firms on mergers said information about pending or threatened litigation generally comes up early in due diligence, along with a conflicts check.
Locke Lord has agreed to pay $12.5 million to settle claims that it failed to prevent an oil and gas client from participating in what the U.S. Securities and Exchange Commission alleges was a $122 million Ponzi scheme.
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