Law Firm Drops Out of Florida SBA Search
February 5, 2010
New York-based law firm Bernstein Liebhard has formally “withdrawn” its proposal for the Florida State Board of Administration’s (SBA) new litigation pool.
According to a Feb. 4 letter, Stanley Bernstein, senior partner at the 17-year old firm, informed SBA General Counsel Thomas Beenck and Deputy General Counsel Maureen Hazen that it has “decided to withdraw itself from consideration.”
Bernstein highlights in the letter that he wanted to “clarify certain remarks” he made to a the Selection Committee on Jan. 14, where he stated that “at no point” during his firm’s dealings with a October 2008 New York District Attorney’s Office’s investigation “had a request been made for [his] personal tax records.” The investigation was a result of a probe into certain New York City charities and false tax return charges, he asserted in the letter.
Furthermore, Bernstein stated after further discussion with his firm’s tax counsel, he wanted to amend Bernstein Liebhard’s responses.
Previously, he said that he received a “verbal request” and not a formal subpoena. Bernstein said that due to this proceeding, as well as the fact that the civil tax matters have since been resolved, he failed to properly recollect the action.
In December, the SBA announced that it had trimmed down the initial group of 31 respondents to its October “Invitation to Negotiate (ITN)” to five firms. The purpose was to update the pool for possible future securities matters, the document said.
In total, the finalists include Philadelphia, Pa.-based Barrack Rodos & Bacine, Palm Beach Fla.-based Berman DeValerio, New Orleans, La.-based Bernstein Litowitz Berger & Grossman, Kaplan Fox & Kilsheimer of Washington, D.C. and New York City-based Pomerantz Haudek Grossman and Gross.
Bernstein Liebhard, which ranked the highest among the firms by the SBA, was subject to an anonymous letter sent to the state agency alleging “unsupported accusations,” the press release said. A spokesperson for the firm told IMW previously that the allegations relate to tax problems of a former partner who “has since left the firm.”
In closing, Berstein said in the Thursday memo that he appreciated the Committee’s “thorough effort” and thanked them for allowing his firm to respond to issues posed in the anonymous attack.
“Due to the burden that this entire unfortunate sequence of events has imposed upon the SBA,” Bernstein explains, “the firm has determined that the better course of action is for the firm to formally withdraw its application to serve as the SBA’s securities counsel.”
Currently, the SBA provides oversight for the $112 billion Florida Retirement System and 34 other state and local government trust funds amounting to roughly $22 billion.
For more information on related topics, visit the following:
