Madoff Debacle Makes Rain for Lucky Law Firms
As law firms, like other businesses, struggle to stay on track in a disastrous economy, a stunning financial storm for many wealthy investors has shown a platinum lining to legal practitioners.
The $50 billion fraud allegedly perpetrated by Bernard Madoff under the guise of a hedge fund has provided unprecedented marketing opportunities for attorneys, reports Bloomberg. For example, a telephone briefing on the situation offered to clients of 750-attorney Proskauer Rose, with one day’s notice, a week after the news of the claimed Ponzi scheme broke, drew 1,300 participants, a record high for the firm for such a program.
“This is a financial 9/11 for our clients,” said partner Gregg Mashberg, who participated in the briefing. “People are dying for information.”
Proskauer and other law firms that are getting new business as a result of the Madoff situation declined to discuss how it might contribute to the bottom line. But Madoff matters clearly have been quite profitable for some lucky law firms and attorneys, according to Bloomberg.
Among them: Ira Sorkin of Dickstein Shapiro represents Madoff in the federal securities fraud case in which prosecutors are still seeking to revoke his bond; Irving Picard of Baker Hostetler has been retained by the Securities Investor Protection Corp. to find and distribute assets of Madoff’s firm; and Martin Flumenbaum of Paul Weiss Rifkind Wharton & Garrison represents Madoff’s sons Mark and Andrew, the New York Times reported, although they reportedly turned their father in to prosecutors via Paul Weiss and haven’t been accused of wrongdoing.
Investors have already begun suing over the situation, with more litigation expected. The Milberg plaintiff securities law firm represented the biggest group, at last report, with more than 100 investor clients, says Crain’s New York Business.
However, Boies Schiller & Flexner is representing more than 50 investors. That work is keeping at least six lawyers at the high-profile litigation boutique busy, partner Stuart Singer told Bloomberg.
