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Court Rejects IPO Fiduciary Duty For Law Firm

Law360 (June 30, 2006, 12:00 AM EDT) -- In a move destined to bring relief to corporate law firms, a Manhattan appellate court has rejected the notion that a firm performing due diligence for a company's initial public offering has an inherent fiduciary obligation to that company.

Last week, the New York Supreme Court’s Appellate Division found that no fiduciary relationship existed between investment bank Morgan Stanley and WellCare Health Plans Inc. that could be applied to law firm Epstein Becker & Green.

Epstein Becker had previously been retained by Morgan Stanley, the underwriter...
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