The Federal Deposit Insurance Corp. has settled a malpractice case against Lathrop & Gage.
A St. Louis federal judge’s order filed today said the lawsuit was no longer set for a Jan. 25 trial because it had been settled. The agreement hasn’t been filed with the court and details of the settlement weren’t immediately available.
The FDIC and Lathrop have until Feb. 26 to ask the court to dismiss the case or file a proposed judgment, according to the order signed by U.S. Magistrate Judge Frederick Buckles.
Washington Mutual Bank sued Lathrop in 2006 for $12.2 million over former Lathrop attorney Stephen Schoenbeck’s handling of a trade secrets lawsuit that ended with a $10.5 million judgment against the bank. The bank went into receivership in September, making the FDIC the plaintiff in the case.
Lathrop has said in court documents that the firm was stymied in its defense by bank employees hiding documents during discovery and lying to Schoenbeck and the circuit court judge.
Doug Dowd, a Dowd & Dowd attorney representing the FDIC, referred questions to the agency. Because the settlement isn’t final, the agency will not comment, said David Barr, a spokesman for the FDIC. Kevin O’Malley, a Greensfelder, Hemker & Gale attorney representing Lathrop, said he couldn’t comment.