Schulte Roth May Have To Face Refco Malpractice Claims

Law360, New York (April 9, 2012, 6:19 PM EDT) -- The bulk of a malpractice suit should proceed against Schulte Roth & Zabel LLP for allegedly failing to properly draft documents for hedge fund investors in doomed brokerage firm Refco Inc., a special master in the Refco multidistrict litigation ruled Monday.

Special Master Daniel J. Capra said Schulte Roth must face most of the allegations brought by the liquidators for the Sphinx Ltd. funds, which were overseen by investment manager PlusFunds Group Inc. and allegedly lost $263 million when Refco collapsed in October 2005.

The liquidators...
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