In more overbilling news, Wilmer Pickering Hale & Dorr has lost a bid to toss out a fraud claim in a $7 million lawsuit, that alleges the law firm overbilled a client it defended in a white-collar crime case.
The Court of Appeals of Texas denied the law firm’s petition for a writ of mandamus, which would have directed the trial court to dismiss a fraud claim brought by McAfee, the anti-virus software company. McAfee can move ahead with the fraud claim, its last surviving cause of action in its suit against the law firm.
McAfee asserts that WilmerHale inflated its legal fees when it defended McAfee former CFO Prabhat Goyal, who was convicted in 2007 of securities-related fraud for overstating the companies profits from 1998 to 2001.
The company says that $6.8 million of the $12 million it cost to defend Goyal included unjustifiable fees and expenses for numerous WilmerHale partners and associates, plus charges for luxury hotel rooms, limousines and bar tabs.
The law firm has denied the overbilling.
Via National Law Journal.