Simpson Thacher Complaint Amended
Professor Deborah Rhode, director of the Stanford Center on the Legal Profession, is quoted in the Daily Journal on an attorney's obligation to give informed consent if a conflict of interest arises during a case. Sara Randazzo filed this story:
Lawyers representing a now-bankrupt Silicon Valley technology company Monday filed an amended malpractice suit against Simpson Thacher & Bartlet alleging the firm had a "debilitating conflict of interest" in representing the company and its chief executive officer, who was defrauding the company.
Simpson Thacher represented Fremont-based PrediWave Corp. and Jianping "Tony" Qu, the company's president and CEO, for 14 months in 2004 and 2005 as general corporate counsel and as litigation counsel in a lawsuit against New World TMT Ltd., a Hong Kong technology and communications company.
Deborah Rhode, a legal ethicist and director of the Stanford Center on the Legal Profession, said attorneys have an obligation to give informed consent if a possible conflict emerges. "The classic conflict is the corporation might have a claim against the CEO," Rhode said. If such a problem arises, "You may be disqualified from representing both [the company and executive]."