Bryan Cave has agreed to pay $650,000 to the bankruptcy estate of convicted con artist Reed Slatkin to settle claims of negligence for failing to recognize the warning signs that Slatkin was conning investors. The law firm maintains that it was also a victim of Slatkin's deception and was unable to discover his Ponzi scheme any earlier than it did.
Resolving this case will allow the bankruptcy trustee to concentrate on pending lawsuits, according to Alexander Pilmer, a partner at Kirkland & Ellis LLP in Los Angeles and counsel for the trustee. "It allows us to focus our litigation efforts against those who profited from Slatkin's scam and against those who helped him perpetuate his fraud," added Pilmer.
This article appeared in its entirety in the October 6, 2003 issue of the Daily Journal Extra.