Nixon Peabody Sued Over $35M Bond In Bell Corruption Case

Law360, New York (October 12, 2012, 11:18 PM EDT) -- Nixon Peabody LLP was hit with a legal malpractice suit Thursday in California state court over its advisement on a $35 million bond deal that allegedly violated the False Claims Act and contributed to a corruption scandal in which former Bell city officials allegedly hid extravagant borrowing.

In its complaint, the city of Bell claimed that the law firm and former Holland & Knight LLP attorney Edsell Martindale Eady had violated the FCA by stating that the transaction met all its legal requirements even though they...
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