Lisa G. Arrowood Represents Venture Capitalist in Legal Malpractice Case Against Proskauer Rose


Lisa G. Arrowood of Arrowood LLP, together with a team from Susman Godfrey, is representing venture capitalist, Dr. Robert Adelman, in a legal malpractice suit filed against his ex-lawyers at Proskauer Rose.

When Dr. Adelman, co-founder of a life sciences investment firm, decided with his fellow co-founders to separate the firm’s hedge fund from its venture capital operations and elevate their hedge fund manager to general partner (with Dr. Adelman and co-founders receiving a share of the returns), he secured his long-time attorneys at Proskauer Rose to represent him and negotiate the terms of the spin-off deal on his behalf.

Dr. Adelman alleges that Proskauer Rose’s actions related to the drafting of the deal’s legal documents had a catastrophic impact on his financial interest in the hedge fund, causing him significant harm. According to the lawsuit, a strategic transaction provision inserted into the documents by the firm gave the hedge fund general partner the power to remove Dr. Adelman and redeem his partnership interest. Shortly after the hedge fund began operating as a standalone company, the hedge fund general partner used the provision to push Dr. Adelman out of the hedge fund.

Dr. Adelman, who is seeking relief including compensatory damages, alleges that his former attorneys failed to exercise reasonable care and skill in representing his legal interests, and that their negligence resulted in the loss of his interest in, and ability to share in the profits from, the very hedge fund he co-founded.

Read the Business Insider article here.