Barclays has dropped the New York dispute against Bear Stearns that cost Linklaters its client relationship with JPMorgan.
Bloomberg reported that Barclays settled the case against former Bear Stearns hedge fund managers earlier this week.
JPMorgan, which bought Bear Stearns last year, booted Linklaters off its global panel in June 2008 after the firm continued to advise Barclays on the litigation against the collapsed investment bank. Linklaters US head Larry Byrne led the New York litigation team.
At the time around a fifth of Linklaters’ global revenue came from 10 financial institutions, of which JPMorgan was one.
Barclays had alleged fraud, conspiracy and breach of fiduciary duty, claiming that Bear Stearns lied about the performance of one of two hedge funds that collapsed in 2007.
WilmerHale represented Bear Stearns while Hughes Hubbard & Reed advised former Bear Stearns executive Ralph Cioffi and Brune & Richard acted for fellow executive Matthew Tannin.