I recently represented a client who had a legal malpractice claim against his former securities litigation attorneys. The client had retained securities attorneys to pursue a claim against a national bank for breach of its fiduciary duty as an indentured trustee for mortgage backed securities. The client had loss his entire investment in high interest promissory notes backed by mortgages when the issuer filed for bankruptcy. Unfortunately, the client’s securities litigation case was dismissed by the court due to the attorneys’ failure to prosecute the lawsuit in a diligent manner.
I was able to obtain a favorable settlement for the client against the former attorneys. The client recovered from his legal malpractice case and a prior case about 25% of his losses from the mortgage backed securities. A 25% recovery of losses in a securities case far exceeds the national average of the recovery of 2.2% of losses in the settlement of class action securities cases in 2014.