Cerberus Atty Pins $55M Loss On Paul Hastings

Law360, New York (November 17, 2011, 5:55 PM EST) -- An attorney for an affiliate of private equity firm Cerberus Capital Management LP told a New York judge Thursday that it had lost $55 million because Paul Hastings LLP had mismanaged a bid to acquire the assets of bankrupt retailer Steve & Barry's.

Cerberus unit Ableco Finance LLC alleges that Paul Hastings' bad legal advice cost it millions. The suit arose when, according to Ableco, it learned that a $125 million secured loan it gave to a Bay Harbour Management LC affiliate, BH S&B Holdings LLC,...
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