"The plaintiffs are the trustees of three benefit funds for the Construction Workers Local 147, better known as the Sandhogs. The plaintiffs allege Pryor Cashman’s malpractice allowed Melissa King, former administrator of the funds, to embezzle $42 million before she was caught. King was arrested in December 2009 and sentenced in June 2012 to six years in prison."
Pryor Cashman had been counsel to the funds for over a decade when the embezzlement came to light. The trustees allege the law firm should have noticed that the administrative fees were unusually high, and counseled the trustees to investigate and to hire an independent auditor."
Now, they have been ordered to pay $ 21,000 in fees for making a new motion seeking leave to appeal to the Court of Appeals. "Pryor Cashman has been ordered to pay more than $21,000 in legal fees for filing a "frivolous" motion in a legal malpractice lawsuit filed by the trustees of employee benefit funds accusing the firm of failing to provide advice that would have prevented the funds’ third-party administrator from embezzling $42 million."