Schlichter Bogard Sanctioned for ‘Reckless’ Great-West Trial

Schlichter Bogard & Denton LLP was sanctioned up to $1.5 million by a Colorado federal judge who said the St. Louis firm “recklessly pursued” its case against Great-West Capital Management to trial while ignoring red flags with the expert witness it relied on to calculate damages related to the company’s mutual fund fees.

Schlichter’s own filings acknowledge that “no plaintiff who has pursued a claim under §36(b) of the Investment Company Act has ever won in the 50 years of that section’s existence,” Judge Christine M. Arguello of the U.S. District Court for the District of Colorado said Monday.

The ...