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Professional Responsibility Keyed to Hazard
Meyerhofer v. Empire Fire and Marine Ins. Co.
Facts
In making a public offering of stock, Empire Fire and Marine Insurance Company (Empire) (Defendant) was represented by Sitomer, Sitomer & Porges (Defendant). Goldberg (Defendant) was an attorney in the firm and had performed some work on the issue. Meyerhofer (Plaintiff) and Federman (Plaintiff), purchasers of Empire stock, sustained losses when the market price of the stock dropped. They brought a class action suit against Empire (Defendant), alleging, among other things, failure to disclose a large finder’s fee arrangement with Sitomer (Defendant). Bernson, Hoeniger, Freitag & Abbey represented Plaintiffs. Goldberg (Defendant) gave Bernson a copy of an affidavit to verify his non-participation in the finder’s fee omission. The district court ordered that the Bernson firm and Goldberg (Defendant) be barred from acting as counsel for Mayerhofer (Plaintiff) in this or any future action against Empire (Defendant) involving the transactions at issue here and then dismissed Meyerhofer’s (Plaintiff) complaint without prejudice. All parties appealed
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