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US bankruptcy firm Pachulski Stang Ziehl Young Jones & Weintraub has been disqualified from acting for a group of former Brobeck Phleger & Harrison partners who are attempting to sue Clifford Chance for $100m (£55.8m).
It is understood that the decision to disqualify Pachulski was made at a hearing in San Francisco on 25 August.
Brobeck’s bankruptcy trustee Ronald Greenspan alleged that Pachulski was conflicted because it had advised Brobeck on its liquidation and was now acting for parties which could have interests in opposition to those of the debtor.
The former Brobeck partners are suing Clifford Chance and former Brobeck chairman Tower Snow, claiming that the departure of 16 partners, led by Snow, to the magic circle firm in May 2002 contributed to the demise of the West Coast firm.