May 16 (Reuters) – (Note: Some readers may find the language in paragraph 6 offensive.)
US law firm Proskauer Rose cannot head off a trial in a $636 million legal malpractice lawsuit, a Massachusetts judge ruled Tuesday, setting the stage for a jury to decide if the firm’s bungling cost an ex-client his stake in a multi-billion dollar hedge funds.
Suffolk County Superior Court Justice Kenneth Salinger rejected Proskauer’s argument that there was not enough evidence to show that the firm’s conduct led to its ex-client Robert Adelman’s alleged losses.
Attorneys and a spokesperson for Proskauer did not immediately respond to requests for comment. Jacob Buchdahl, a Susman Godfrey partner representing Adelman, declined to comment.
Adelman sued Proskauer in March 2020, claiming he lost out on profits from a hedge fund he co-founded because Proskauer attorneys included a provision in its partnership agreement that allowed its manager, Behzad Aghazadeh, to oust him from the fund.
The hedge fund was a spin-off of venBio, an investment firm in which Adelman, a doctor, is a managing partner. The hedge fund, originally called venBio Select Advisor, is now known as Avoro Capital.
Adelman accused the firm of committing a “botched cut-and-paste” job with the partnership agreement. He cited handwritten notes from Proskauer’s partner Sarah Cherry, who allegedly drew brackets around the key provision that gave Aghazadeh broad authority and wrote the word “fuck” next to it, indicating a mistake.
Proskauer, represented by lawyers from Williams & Connolly, had argued that it cannot be held responsible for the actions of Adelman’s former colleague.
Aghazadeh is not a party to the lawsuit. His lawyer, Randy Mastro of King & Spalding, previously told Reuters that Aghazadeh acted properly within the confines of the agreement Proskauer negotiated. Mastro did not immediately respond to a request for comment.
Court records show a final pre-trial conference in the case is set for July 25.
The case is dr. Robert Adelman v. Proskauer Rose, Suffolk County Superior Court, No. 2084CV00735
For Robert Adelman: Lisa Arrowood, Jed DeWick and William F. McGonigle of Arrowood LLP, and William Carmody, Jacob Buchdahl, Mark Musico, Elizabeth Aronson and Matthew Berry, of Susman Godfrey LLP
For Proskauer Rose: Richard Zielinski, Gary Ronan and Joel Antwi, of Goulston & Storrs PC, and John Villa, David Blatt, Joseph Terry, Matthew Johnson, Stephen Wohlgemuth and Krystal Durham, of Williams & Connolly LLP
Read More:
Proskauer headed to a crucial hearing in $636 million malpractice case
Reporting by David Thomas
Our Standards: The Thomson Reuters Trust Principles.