Ex-Client Sues Paul Hastings for $55 Million in Soured Loan
A financing unit of Cerberus Capital Management L.P. has sued Paul, Hastings, Janofsky & Walker, seeking more than $55 million it said it lost because of a $125 million loan it made last year to a company looking to bring retailer Steve & Barry's out of bankruptcy. Ableco Finance LLC claims it would never have made the loan if the Paul Hastings team had advised it that the buyer would not have rights to all of Steve & Barry's inventory, which Ableco understood would back the loan.
