Nixon Peabody Must Face Suit Alleging It Aided NewPoint Fraud

Law360, New York (September 5, 2012, 9:52 PM EDT) -- A California federal judge on Wednesday refused to dismiss a lawsuit accusing Nixon Peabody LLP of professional negligence related to a $20 million Ponzi scheme run by the convicted head of onetime-client NewPoint Financial Services Inc.

U.S. District Judge Dean D. Pregerson denied Nixon Peabody's bid to toss the suit, rejecting each of the law firm's arguments as unpersuasive.

With the order, Nixon Peabody will be forced to answer allegations that the firm helped NewPoint President John Farahi loot assets, violate securities laws and conceal embezzlement...
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