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!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Legal Assistant / Paralegal

USA-FL-Tavares

Tavares boutique and growing law firm is looking for a full-time legal assistant / paralegal to work...

Apply now

Litigation Associate Attorney

USA-CA-San Francisco

Andrus Anderson LLP is a plaintiffs’ firm in San Francisco looking for a full-time associate w...

Apply now

Maine Litigation Attorney

USA-ME-Portland

Busy New England business law firm seeks Maine Litigation Attorney based in our Portland, Maine offi...

Apply now

Maine Foreclosure Attorney Operations Manager

USA-ME-Portland

Bendett & McHugh is looking for a strong Foreclosure Attorney Operations Manager for our Maine Forec...

Apply now

SEARCH IN ARCHIVE

To Top