Overview
- A preliminary $54 million settlement was filed in Miami federal court on Friday to resolve a class action by former FTX customers and must be approved by a judge before taking effect.
- Plaintiffs said Fenwick helped design corporate structures that let FTX mix and misdirect customer funds and avoid oversight, claims the firm denies by saying it had no knowledge of the fraud.
- Plaintiffs' lead counsel argued the deal is reasonable and avoids long, complex litigation while Fenwick said it stands by the integrity of its legal work and disputes any wrongdoing.
- A separate group of about 20 plaintiffs has an active $525 million lawsuit in Washington, D.C. federal court that targets Fenwick and several individual partners, so the firm’s total exposure is unresolved.
- The settlement is part of a second wave of FTX-related agreements that could reshape how law firms handle risky crypto clients by raising insurance costs and tightening due diligence.