Fortress Investment Group, LLC has sued the law firm Dechert, LLP for a legal opinion rendered by the firm about an investment that turned out to be part of a giant Ponzi scheme. Fortress alleges that before they invested in a fake note sold by Marc Dreier, principal of the 270 lawyer firm of the same name, Fortress retained Dechert to issue a legal opinion. Fortress now alleges that Dechert confirmed that the note/loan was legitimate. In fact the loan was a sham and Dreier misappropriated the proceeds from Fortress for his own use, the suit alleges.
This is yet another example of exploring every possible avenue available for recovery if you have been defrauded. If the allegations in this lawsuit are true, Dechert could end up paying for the fraudulent misdeeds of others. It will be interesting to see the proof behind these allegations. I will follow this case and keep you posted.
A link to the Wall Street Journal article is here.