Lancelot Trustee Sues Katten Over Conflict Of Interest

Law360, New York (May 3, 2012, 9:21 PM EDT) -- Katten Muchin Rosenman LLP was sued Thursday in Illinois by the bankruptcy trustee for a fund that had been done in by Thomas Petters' $3.5 billion Ponzi scheme over allegations the firm represented the fund and its client constituents despite a conflict of interest.

In a complaint filed in Illinois federal court, Ronald Peterson, the Chapter 7 trustee for Lancelot Investors Fund Ltd. and Colossus Capital Fund Ltd., claims Katten wrongly represented both Lancelot and Colossus along with their client constituents who had invested the funds'...
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