David Stern David Stern.

David Stern, a founding partner of Philadelphia workers' compensation and Social Security disability law firm Pond Lehocky Stern Giordano, has filed a lawsuit in Philadelphia trial court against the firm, alleging its managing partner has engaged in "continued efforts to coerce Stern into forfeiting his partnership interest."

According to the complaint, filed Tuesday in the Philadelphia Court of Common Pleas, Stern is seeking to dissolve the partnership and have a receiver appointed to oversee the dissolution.

Stern alleged in the complaint that Pond Lehocky managing partner Samuel Pond's "oppressive conduct" "has made it not reasonably practicable to carry on the business in partnership with him."

"As a result of certain imaginary complaints that Pond wrongly believed Stern had made toward him, Pond has gone on the warpath against Stern attempting to make his life at the firm so untenable that Stern voluntarily withdraws from the partnership and accepts a one-dollar buyout of his 31.67% ownership stake in the firm which has been valued in excess of $90,000,000 by persons hired by Pond himself," Stern alleged in the complaint.

The suit also names Pond as a defendant, along with the firm's two other equity partners, Jerry Lehocky and Thomas Giordano.

According to the complaint, Pond "has ousted Stern from his role as the de facto managing partner of the worker's compensation department, disparaged Stern before the entire firm, taken credit for Stern's ideas for improving the worker's compensation department while blaming Stern for the failed policies that Pond implemented and that Stern had warned against, and is falsely accusing Stern of having manifested an intent to withdraw from the partnership, and of placing the firm, its employees and clients in jeopardy as part of his continued efforts to coerce Stern into forfeiting his partnership interest."

Pond said in a statement on the firm's behalf Wednesday, "Myself, Jerry and Tom and the partnership, along with our staff, are disappointed and were disappointed to learn that this was filed."

"We clearly disagree with the allegations in the complaint," Pond continued. "I've said all along, and I continue to say publicly and privately, that our concern first and foremost always is for our clients, staff and referral partners. That's where our focus has to be."

Pond added that the lawsuit "will not disrupt our mission to our clients, our staff and our partners."

The lawsuit was filed following failed negotiations for the firm to either buy Stern out of his ownership stake or allow him to stay on as a partner, according to the complaint.

The complaint alleged those talks were precipitated by a revised partnership agreement originally circulated to Stern and the other partners by Pond in the winter of 2018-19. Stern and the other partners expressed concerns over certain aspects of the agreement, including a provision that Pond would remain the managing partner until either his death or retirement, rather than upon turning age 72, as the previous agreement had called for, the suit claims.

According to the complaint, the matter was put on hold until June of this year, when a similar partnership agreement was circulated, which Pond allegedly "demanded" his fellow partners sign. Eventually, they did.

The complaint alleged that Pond believed Stern had told him to retire and had questioned the monthly management fee Pond collected in addition to his partnership draws and distributions. Stern said in the complaint that neither allegation was true.

"Based upon these two imaginary grievances, the relationship between Pond and Stern has become irreconcilable, even though months later, Pond ultimately admitted to Stern that Stern never told him to retire, nor questioned his management fee," the complaint alleged.

Following the signing of the June agreement, the complaint alleged, Pond "has attempted to freeze Stern out of the partnership and force him to leave without fair compensation for his ownership interest in the firm."

According to the complaint, among the rejected proposals for settling the partnership dispute was Pond's suggestion of "an absurd buy-out" of Stern's share of the firm, "which, at bottom, ended with Stern paying the firm approximately $200,000."

"Pond then wrongfully accused Stern of having declared an intention to voluntarily leave the firm and that consequently Stern was entitled to $1 for his ownership stake," the complaint alleged, adding that no offer was made that would have allowed Stern to stay on as a partner.

"Stern has been stripped of his standing at the firm that he helped build, despite that Stern retains an ownership stake equal to Pond and Lehocky," the complaint said, alleging that Pond also cut Stern out of a new venture by the firm in Washington, D.C., as well as a transaction with the Philadelphia 76ers professional basketball team.

Stern is represented in the suit by Benjamin Garber of Braverman Kaskey in Philadelphia. Neither Garber nor Stern responded to requests for comment on the lawsuit.

Read the Complaint