Lewis Brisbois Bisgaard & Smith has recently come under scrutiny following revelations from an internal memo indicating the firm held millions in unreturned client payments that were over a year old. The memo, which was sent to the firm’s management committee in April 2023, reported $5.6 million in duplicate payments and $9.5 million in client retainer funds. Of these, $3.3 million in duplicate payments and $4.4 million in retainers were over a year old. Additionally, another $10.2 million was categorized as “unapplied funds” older than one year.
The memo’s details echo earlier allegations made by a former executive in a 2019 letter to California state authorities, which cited financial mismanagement at the firm. These allegations have also resurfaced in a recent lawsuit, further intensifying the firm’s current crisis.
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