Judge Allows Suit Claiming a Billing ‘Free for All’ by WilmerHale
A Texas judge has refused to dismiss a claim that Wilmer, Cutler, Pickering, Hale and Dorr committed fraud by overbilling for the defense of McAfee’s former chief executive officer.
Judge Mark Rusch of Collin County allowed the fraud claim against WilmerHale, but dismissed claims for breach of fiduciary duty, breach of contract and gross negligence, Texas Lawyer reports. McAfee’s suit claims the law firm engaged in a billing “free for all.”
WilmerHale represents former McAfee CEO Prabhat Goyal, convicted of securities fraud for overstating corporate profits. McAfee was paying Goyal’s fees under an indemnity agreement.
The case had been removed to federal court, but in August U.S. District Judge Michael Schneider sent the case back to state court, saying he did not have subject matter jurisdiction. Schneider had also raised jurisdictional issues in an earlier ruling in July.
McAfee is represented by Rose • Walker in Dallas. Name partner Marty Rose told Texas Lawyer he is glad the fraud claim survived because “frankly, that’s all we care about.” He said a “jury is going to hear that these East Coast lawyers spent $12 million of McAfee’s money to defend a criminal in a case that should have taken a tenth of that.”
WilmerHale denies that it overbilled for Goyal’s defense or that it committed fraud. Gerson Zweifach of Williams & Connelly represents the firm. He told Texas Lawyer the case is “massive” and involved 1.2 million documents, justifying the firm’s legal bills.
