US firm Akin Gump Strauss Hauer & Feld is facing a massive $4.4bn claim from ex-hedge fund managers James McBride and Kevin Larson.
McBride and Larson each paid out $750,000 after the Securities and Exchange Commission (SEC) prosecuted them for the illegal purchasing of mutual fund shares after the markets closed at 4pm for the Veras series of funds.
They allege that Akin Gump advised them that the practice of late trading was legal and that the firm is responsible for their losses.
A spokesperson for the firm said: “Akin Gump acted ethically and in its client’s best interests. Akin Gump is forcefully defending this case, and we are confident we will prevail.”
The case will be heard at the Manhattan Supreme Court.