Tuesday, May 28, 2013

Another Conflict Allegation Makes Mainstream News

Here's another conflicts accusation playing out in the public eye. CalPERS even issued a press release with their side of the story: "CalPERS Files Motions to Disqualify Law Firm." For more detailed reporting, see:"CalPERS blasts move by law firm" --
  • "A law firm representing a Stockton creditor in bankruptcy is accused of playing dirty by raiding attorneys from an opposing firm that represents the California Public Employees' Retirement System. CalPERS, with which the city contracts to manage employee pensions, wants the judge overseeing Stockton's bankruptcy to kick Winston & Strawn, LLP, off the case in an argument also with implications in San Bernardino's ongoing Chapter 9."
  • "Winston & Strawn… represents National Public Finance Guarantee, which insures bonds Stockton stopped paying down in its financial crisis."
  • "CalPERS contends in court papers that Winston & Strawn recruited three members of a restructuring and insolvency team - one partner and two associates - from the Charlotte, N.C., office of K&L Gates. CalPERS contracts with K&L Gates for assistance in the Stockton bankruptcy."
  • "Those three attorneys were at the heart of a team forming CalPERS' strategy in Stockton's case, having collectively logged 500 hours at K&L Gates, CalPERS contends."
  • "Yet, Winston & Strawn says the attorneys in question will be appropriately screened from the case. The firm is well aware of its legal and ethical obligations while hiring attorneys, Winston & Strawn said in a statement."
See also reporting by Thomson Reuters.

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