Anthony Lin in The New York Law Journal http://www.nylj.com reports that SDNY Judge Gerard Lynch has permitted a lawsuit by JPMorgan Credit and a syndicate of banks to proceed.
The banks may continue with the lawsuit against former counsel James C. Gorton from the in-house counsel’s office of Global Crossing. LTD.
The court denied motions to dismiss based on the argument that the attorney either did not know, or actively opposed the sham transactions to inflate revenue.
The court found that the banks made a sufficient showing on the motion so that a fact finder could infer that the defendant attorneys were actively involved.