Shearman Dodges Malpractice Suit Over Bad Investment

Law360, New York (January 9, 2013, 5:20 PM EST) -- A former Shearman & Sterling LLP client on Tuesday lost his New York state appeals court bid to hold the firm accountable for the $750,000 investment he lost after his friend’s company, Pacific Jet Inc., went bankrupt.

A five-judge panel from the First Department of New York's Supreme Court, Appellate Division said that former Shearman & Sterling client James Garten’s losses were caused by Pacific Jet’s poor financial condition and Garten’s own misjudgment of the risk of the investment, not the firm’s alleged malpractice.

“The undisputed...
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