Federal Judge Dismisses Racketeering Claims Against Law Firm Partners, Orders Sanctions for Plaintiff Attorneys


A federal judge has dismissed racketeering allegations against partners of a law firm in a case involving an alleged multimillion-dollar fraud scheme. The plaintiff attorneys involved in the suit are now facing sanctions for including numerous firm partners in a wide-reaching lawsuit. The plaintiffs claimed these partners formed an unregistered general partnership that should be held liable for the actions of Torben Welch, the managing partner of Messner Reeves’ Salt Lake City office. The court concluded that such broad allegations could unfairly implicate innocent partners at limited liability firms, typically protected from such suits. Further details about the case can be found here.