A Broward County, Florida jury on Thursday found prominent New York-based law firm Simpson Thacher & Bartlett not liable for an insurance administrator's 2018 collapse.
The jury after three weeks of trial determined that Simpson Thacher was not professionally negligent in its attorney-client relationship with former Patriot National CEO Steve Mariano. Mariano hired the firm to arrange the sale of publicly traded stock on behalf of Fort Lauderdale, Florida-based Patriot National to a group of private hedge funds.
Mariano alleged in a lawsuit that the law firm failed to craft restrictions that would have prevented those funds from short-selling the company's stock starting in late 2015. The firm's negligence led to Patriot National's collapse and bankruptcy, the lawsuit claimed.
Mariano sought over $200 million in damages.
Spokespersons for Mariano and Simpson Thacher did not immediately respond to requests for comment.
Mariano's lawsuit included related claims of professional malpractice and negligence against Kasowitz Benson Torres, another New York law firm. Mariano hired Kasowitz to pursue litigation against the funds that were short-selling Patriot National's stock, but he alleged the firm failed to alert him to Simpson Thacher's alleged malpractice.
Mariano's case against Kasowitz is on pause and was not decided by the jury on Thursday. An attorney for Mariano previously told Reuters that the jury's ruling on his claims against Simpson Thacher could affect the case against Kasowitz.
A spokesperson for the Kasowitz firm, now known as Kasowitz LLP, did not immediately respond to a request for comment Thursday.
