Shearman & Sterling Ducks Suit Over Client's Lost Loan

Law360, New York (August 11, 2011, 3:45 PM EDT) -- A New York state judge tossed a malpractice suit against Shearman & Sterling LLP on Thursday, ruling that a former client couldn't blame the firm after he lost $750,000 he loaned to a friend's company after it went bankrupt.

Ex-client James Garten alleged that when he agreed to loan the money to his friend's faltering company, Pacific Jet Inc., his friend lied about how much debt was senior to his own loan.

After Pacific Jet failed and Garten lost what he'd loaned, he sued Shearman &...
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