Jeffrey I. Golden v. O’Melveny & Myers LLP, et al.

Analysis Group was retained on behalf of O’Melveny & Myers LLP and two of its attorneys, the respondents in an arbitration dispute with the bankruptcy trustee for the defunct hedge fund Aletheia Research and Management. The trustee sued O’Melveny & Myers for alleged malpractice, breach of fiduciary duty, and fraudulent transfers stemming from O’Melveny & Myers’ joint representation of Aletheia and its principal founder and majority shareholder, Peter Eichler, in lawsuits against the Securities and Exchange Commission and a former investment partner. The trustee sought more than $54 million in damages, alleging that O’Melveny & Myers had an unwaivable conflict that caused it to ignore evidence that Mr. Eichler was paying himself millions of dollars in excess compensation, leaving less money available for bankruptcy creditors.

An Analysis Group team led by Vice President Nathan Trujillo supported Managing Principal Jeffrey Kinrich in conducting forensic accounting and damages analyses. Mr. Kinrich testified at deposition and in arbitration on various issues, including damages, causation, and Mr. Eichler’s collectable net assets.

After a 12-day evidentiary hearing, the arbitrator issued a 137-page final award, ruling against the trustee on his claims for legal malpractice and breach of fiduciary duty. The arbitrator’s award was later confirmed by the US District Court for the Central District of California, and the remaining claims for fraudulent transfer were dismissed in summary judgment.