Trustee Flays K&L Gates Over $500M Le-Nature Scam

Law360, New York (September 10, 2009, 7:20 PM EDT) -- The trustee overseeing the liquidation of Le-Nature Inc. has accused K&L Gates LLP of malpractice for failing to discover evidence of a $500 million fraud while conducting an internal investigation of the collapsed beverage company.

U.S. Trustee Marc S. Kirschner filed suit Wednesday in the Court of Common Pleas of Allegheny County, Pa., claiming K&L Gates and accounting firm Pascarella & Wiker LLP are liable for malpractice, negligence, breach of contract, breach of fiduciary duty and negligent misrepresentation for allegedly botching the 2003 investigation.

The firms...
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