Overview
- MV Realty filed a malpractice suit in Florida state court that seeks between $300 million and $1.2 billion from Holland & Knight and three of the firm’s Miami attorneys after legal trouble over the company’s product.
- The complaint says Holland & Knight billed more than $9 million, failed to consult needed experts, breached fiduciary duties, and withdrew support once states began suing.
- MV’s disputed homeowner benefit agreements paid owners an upfront sum for a long exclusive listing right, and state attorneys general have alleged the contracts hid terms including 40-year durations and unlawful fees.
- More than 30 state investigations opened and 16 states filed suits over the program, and MV has reached recent settlements with several states while Maryland brought charges in late May.
- MV ties concrete losses to counsel’s guidance, saying it invested $156 million in the product, sold equity at a roughly $320 million valuation, and spent about $20 million defending enforcement actions.