In a Florida courtroom on July 21, 2026, the former Chief Financial Officer of Patriot National Inc. testified that “chaos” erupted when a fundraising initiative, overseen by Simpson Thacher & Bartlett LLP, reached the public markets. Executives discovered that the terms of the deal differed from their understanding, leading to significant internal turmoil.
This testimony is part of a legal malpractice lawsuit filed by Steven Mariano, the former CEO of Patriot National. Mariano alleges that Simpson Thacher’s handling of a private securities offering in 2015 was flawed, ultimately contributing to the company’s bankruptcy in 2018. He is seeking damages exceeding $100 million, claiming that the law firm’s missteps left the company vulnerable to market manipulations, including short-selling by hedge funds, which drove down the stock price.
During the trial, Simpson Thacher’s defense highlighted issues with Patriot National’s financial audits. They pointed out that two years after the contested fundraising transaction, auditors refused to certify the company’s financial statements, suggesting that internal financial management problems, rather than the law firm’s actions, were to blame for the company’s downfall.
The case has garnered attention due to the rarity of legal malpractice claims against prominent law firms proceeding to jury trials. Legal experts note that such cases often settle out of court to avoid public scrutiny. The outcome of this trial could have significant implications for how law firms manage risk and client relations in complex financial transactions.
As the trial continues, both sides are presenting evidence to support their claims. The jury’s decision will not only impact the parties involved but may also influence future practices in legal and financial sectors.