Chicago Law Firm Defeats Litigation Funder’s Malpractice Suit

Illinois-based Sugar Felsenthal Grais & Helsinger LLP beat a legal malpractice suit, after a federal judge held that no evidence linked the law firm’s conduct to any harm to litigation funding provider Signal Funding LLC.

Signal Funding accused Sugar Felsenthal of breaching its duty by also representing former Signal Funding employee Farva Jafri, who launched a competing venture, in adverse matters. The law firm was further accused of misrepresenting to Signal Funding that it wasn’t providing adverse advice to Jafri.

Judge Joan H. Lefkow of the US District Court for the Northern District of Illinois granted Dec. 23 Sugar Felsenthal’s ...