Boston Globe discusses a class action suit against State Street Bank and Trust
But when Judge Wolf asked the lawyers, including those from Thornton, whether they would have any difficulty responding to questions from the new special master, Rosen, they said no. Evidence gathered in a civil investigation could be used in criminal proceedings, as well.
“I don’t anticipate any problems,” said Brian Kelly, who represents Thornton Law.
Wolf said the special master may ultimately find the fee award reasonable, or he may want to reduce it. He could also recommend sanctions if he finds misconduct, Wolf said, citing state and federal rules barring lawyers from making false statements.
Wolf delayed deciding whether Ted Frank, a lawyer with the Competitive Enterprise Institute think tank in Washington and a leading critic of excessive fees in class-action cases, can intervene in the case, as he has requested.
The plaintiffs’ lawyers opposed his involvement.
“It’s ironic, because any corporation caught telling investors something this misleading would surely face litigation from Labaton and Thornton,” Frank said after the hearing.
“One hopes affected investors step forward and do something about it.”
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