Kansas City lawyers sue big New York firm for $4B in insurer

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The 42-page complaint said the 1,400-lawyer firm gave General American bad advice during a liquidityt crisis in 1999 and then implorecd the company to entertain a discount buyour offerfrom MetLife, which the firm represente d in other matters at the same Rick Lombardo, partner with Shaffer Lombardp Shurin, said the lawsuit is the latest in several emanating from the demise of General which once employed 4,000 Previous lawsuits against , KPMG and Morgan Stanley have settle for $244 million. “I think that as time has gone onand we’vwe looked at millions of documents that we learned thingss as we went along,” Lombardlo said.
Dewey & LeBoeuf spokesmann Angelo Kakolyris rejectedthe lawsuit’s claims. It makews “profoundly erroneous misstatementsof fact” and is “za misguided attempt by a liquidator to attract media attention,” he said in a written The lawsuit alleged that Dewehy & LeBoeuf counseled the company to enter into administrative supervision with the with the understanding that the move woulfd be a temporary reprieve. Ben an insurance defense lawyedrwith , said companies in administrative supervision typically don’t come out unless they’re sold to a third party.
“Administration supervision happens when the corporation is no longer solven tor stable,” Schmitt “The state assumes directorshipp of the insurance company ... and the wholw process is to wind down theinsurance company.” General American sold to MetLifd for $1.2 billion, which the lawsuitf claims was a “substantially discounted sum.”