Home

Court Dismisses $10 Million Malpractice Suit against Greenberg Traurig
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Earlier this month, Manhattan Supreme Court Justice Eileen Bransten dismissed a $10 million malpractice suit against Greenberg Traurig. Thomas Cusack, a former executive at American Defense Systems Inc., had brought the malpractice lawsuit. Cusack had accused Greenberg Traurig of malpractice, negligence and breach of fiduciary duty following the IPO of American Defense Systems. The lawsuit had alleged that Greenberg Traurig had prevented him from selling shares by neglecting to remove restrictions from 900,000 shares of American Defense stock held by Cusack.

The court dismissed the suit on the grounds that Greenberg Traurig had an attorney-client relationship only with the company American Defense Systems, and not with Cusack. The lawsuit was also found barred on the grounds of limitations. While the alleged incident happened in 2008, Cusack brought the lawsuit in 2011, beyond the three-year limitation from the time of injury for filing a lawsuit over negligence.

Before going for its initial public offering in 2008, the American Defense Systems notified all its shareholders, including Cusack that they could have restrictive covenants removed from the shares held by them – enabling the stock to be traded publicly. Shareholders were asked to contact Greenberg Traurig, which was acting as the securities’ counsel to the company. Shareholders were asked to seek an opinion letter from the law firm as regards their shares and then submit the same to the transfer agent of ADS, the Bank of New York Mellon.

  
What
Where


Greenberg Traurig had duly issued an opinion letter for Cusack to BNY Mellon in June 2008, but Cusack alleges that BNY Mellon told him the letter was not in an acceptable form. However, Greenberg Traurig refused to issue another opinion letter claiming the American Defense Systems had directed it not to issue another opinion letter. Cusack filed a lawsuit, but apparently, too late.

The case is Thomas F. Cusack v. Greenberg Traurig, New York State Supreme Court, New York County, Nos. 651952/2011.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Legal Secretary

USA-LA-New Orleans

A New Orleans litigation law firm is seeking an experienced Legal Assistant / Legal Secretary to und...

Apply now

Consumer Bankruptcy Attorney

USA-TX-Fort Worth

We are currently looking for a consumer Bankruptcy Attorney to join our team. This position is respo...

Apply now

Legal Assistant

USA-TN-Knoxville

London & Amburn, PC is located in downtown Knoxville, Tennessee near the Hilton Hotel. London & A...

Apply now

Paralegal

USA-NE-Bellevue

Paralegal Big Fire Law & Policy Group LLP is seeking an experienced Paralegal to join our Firm. ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Civil Litigation Associate Attorney

USA-FL-Tampa

Tampa office of a BCG Attorney Search top ranked law firm seeks Civil Litigation Associate Attorney ...

Apply Now

Associate Attorney

USA-MI-Livonia

Livonia office of our client seeks Associate Attorney with 2 years of complex civil litigation exper...

Apply Now

Senior Litigation Partner

USA-NY-New York City

New York City office of our client seeks Senior Litigation Partner with 38 years of experience. The ...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top