Holland & Knight LLP has initiated legal action to dismiss a lawsuit filed against the firm that accuses one of its partners of colluding in fraudulent activities concerning bankrupt GWG Holdings Inc. The GWG trustee has demanded damages amounting to at least $148.4 million, claiming a scheme by the law firm to “loot” the bond seller.
This legal battle was brought to the forefront when the litigation trustee’s claims, described by Holland & Knight as “fictional,” were presented as lacking substantive allegations and failing to account for legal shields such as attorney immunity and the statute of limitations. These assertions were formally addressed in a motion to dismiss, submitted by the law firm in the US Bankruptcy Court for the Southern District of Texas. According to the report from Bloomberg Law, the case centers on accusations from February, asserting that litigation partner William “Bill” Banowsky was complicit in illicit activities with GWG Holdings’ leadership.
The lawyer’s alleged involvement and the trustee’s claims have drawn significant attention in legal circles, given the high-profile nature of the parties involved. This case, if it proceeds, could set a notable precedent in cases of alleged collusion and fraud involving legal professionals and financial entities.