A Manhattan judge has ordered two US firms to turn over documents to DLA Piper Rudnick Gray Cary as the firm seeks to defend a legal malpractice suit over 'late trading'.
LeBoeuf Lamb Greene & MacRae and Seward & Kissel have been told to hand over documents on the grounds that their client's malpractice suit against DLA Piper is not subject to attorney-client privilege. The judge also said that the advice given to the claimants by LeBeouf and Seward could have a bearing on the case.
Ryan Goldberg and Michael Grady, former brokers with Brean Murray & Co, sued DLA Piper last year after they became targets in an investigation by the Securities and Exchange Commission (SEC).
Late trading is the sale of shares in mutual funds to big clients when the market is closed, to the disadvantage of smaller investors. The US government deems it illegal. Brean Murray had carried out a series of late trades for investors, claiming that Michael Hirschberg, a partner at DLA Piper legacy firm Piper Rudnick, gave advice that late trading was legal. Hirschberg has since moved on to Katten Muchin Zavis Rosenman. The brokers are seeking $2m (£1.1m) in damages.