Two former clients of Milbank, Tweed, Hadley and McCloy have sued the firm for malpractice involving an ethanol project gone awry.
The firm represented Medley Capital LLC and Fourth Third LLC in the two companies' bids to finance an ethanol plant in Nebraska. A Milbank partner assured his clients that they would have the first, secured lien on the plant and its real estate, should the clients procure the loan for the plant.
The clients now claim the firm "failed to draft and record the necessary documents to maintain a primary secure lien on the project assets" and, after the company running the project went into bankruptcy, Medley Capital and Fourth Third filed against Milbank in California state court.
You can read more about the suit at AmLaw Daily.