Polsinelli Reaches Settlement in Crypto Legal Malpractice Suit

A liquidating agent of now-defunct cryptocurrency trading club Q3I LP reached settlement in his suit against law firm Polsinelli PC over allegations that the firm hadn’t done its due diligence in representing the company.

The agent, Sankat Vyas, sued Polsinelli and one of its attorneys for legal malpractice, negligence, and other claims in January 2022. The complaint, filed in the US District Court for the Middle District of Florida, alleged that Polsinelli lawyers failed to catch false representations made by Michael Ackerman, who created the crypto trading algorithm used by the company.

• The suit also alleged that the firm didn’t verify the accuracy of Ackerman’s reported returns
• Vyas attempted to voluntarily dismiss the case against the firm in June, to start anew in Missouri to allege an additional instance of negligence that Vyas said was revealed during discovery
• Judge Virginia M. Hernandez Covington denied Vyas’ bid to dismiss his own case, concluding that Polsinelli would be prejudiced by the dismissal of this suit and the opening of a new one because it would have to redo the discovery process
• Parties reached settlement on Friday after several months of mediation

Attorneys from both parties didn’t immediately respond to a request for comment on the terms of the settlement.

Vyas is represented by McIntyre Thanasides Bringgold Elliott Grimaldi Guito & Matthews PA. Polsinelli is represented by Mitrani, Rynor, Adamsky & Toland PA.

The case is Vyas v. Polsinelli PC, M.D. Fla., No. 8:22-cv-00071, 8/4/23.