A recent lawsuit filed in the U.S. District Court for the Western District of Missouri alleges that prominent law firms Husch Blackwell, Morrison & Foerster, and Nelson Mullins provided misleading advice to a venture capital firm regarding securities law compliance. The suit claims that the firms’ guidance led to significant financial losses for the plaintiff.
The complaint specifically names Catherine Hanaway, former chair of Husch Blackwell and current Missouri Attorney General, as a defendant. Hanaway’s involvement has drawn considerable attention due to her prominent public role.
Husch Blackwell has faced legal scrutiny in the past. In September 2025, the firm was sued for allegedly misusing employee retirement funds. The class action lawsuit accused the firm of withholding funds from employee paychecks intended for retirement accounts and instead diverting them into a general account used for operating expenses. The complaint alleged that these actions violated the Employee Retirement Income Security Act (ERISA). The named plaintiff in that case was Tyler Paetkau, a former attorney at Husch Blackwell. ([abovethelaw.com](https://abovethelaw.com/2025/09/biglaw-firm-accused-of-raiding-employee-retirement-funds/?utm_source=openai))
Nelson Mullins has a history of representing clients in securities litigation and enforcement matters. The firm’s experience includes defending publicly traded companies, audit committees, directors, and officers in securities fraud class actions, regulatory inquiries, and lawsuits brought by the SEC and DOJ. ([nelsonmullins.com](https://www.nelsonmullins.com/services/securities_and_enforcement?utm_source=openai))
Morrison & Foerster has also been active in securities law, regularly discussing SEC enforcement developments and representing clients in related matters. In April 2025, the firm highlighted key SEC enforcement actions, including cases involving fraudulent schemes and misrepresentations to investors. ([clsbluesky.law.columbia.edu](https://clsbluesky.law.columbia.edu/2025/06/05/morrison-foerster-discusses-top-five-sec-enforcement-developments-for-april-2025/?utm_source=openai))
The current lawsuit underscores the complexities and potential risks associated with legal advice in securities matters. As the case progresses, it may provide further insights into the responsibilities and liabilities of law firms in guiding clients through the intricate landscape of securities regulations.