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Professional Responsibility Keyed to Hazard
Klein v. Boyd
Facts
Coleman, who had a long history of securities fraud, joined with a new partner to purchase a securities broker business. An attorney, Drinker (Defendant), completed the partnership agreement, a subscription agreement, and a disclosure letter. He also prepared a “November Disclosure Package,” which did not include any information about Coleman’s past fraudulent conduct. When financial difficulties came upon the limited partnership, some investors (Plaintiff) sued Drinker (Defendant) and the partnership (Defendant), for violation of federal securities law, common law fraud, and RICO violations. The district court granted Drinker’s (Defendant) motion for summary judgment on all counts. The investors (Plaintiff) appealed
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