Macquarie’s Malpractice Suit Against MoFo Revived

Jan. 10, 2018, 12:11 AM UTC

A New York appeals court on Jan. 9 revived a malpractice suit that accuses Morrison & Foerster LLP of failures in conducting IPO due diligence on a Chinese mining company that turned out to be “an empty shell.”

The decision was a victory for plaintiff Macquarie Capital (USA) Inc., an investment bank that hired MoFo to advise it on underwriting a botched public offering that triggered an SEC enforcement action and a class action suit against Macquarie.

The public offering raised $115 million for Puda Coal Inc., a Chinese mining company that failed after an investment blogger said ...

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