Greenberg Can't Shake Suit Over $200M Securities Fraud

Law360, New York (June 9, 2011, 11:39 PM EDT) -- An Arizona federal judge on Thursday dismissed securities violations claims against Mortgages Ltd. legal advisors and auditors, but refused to toss claims against Greenberg Traurig LLP, which represented the bankrupt mortgage lender, for its alleged role in a $200 million fraud.

In an order addressing several motions to dismiss, U.S. District Judge Frederick J. Martone said the plaintiffs had sufficiently alleged Greenberg Traurig had facilitated the massive Ponzi scheme run by Mortgages and its collapsed business partner Radical Bunny LLP. But he dismissed claims against Quarles...
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