Two well-known law firms from Los Angeles have been sued by the financier within the entertainment industry. The lawsuit claims that the law firms aided and abetted a reported breach of fiduciary duty by his old in-house counsel. The lawsuit was filed on Friday of last week in Los Angeles Superior Court by the plaintiff, David Bergstein. He claims that his counsel at the time, Susan Tregub, offered information to Stroock & Stroock & Lavan and Levene Neale Bender Yoo & Bril that was supposed to be confidential even though Tregub was still working for Bergstein.
The lawsuit then goes on to say that the information provided to the two law firms by Tregub was used against Bergstein. The lawsuit cites “a litigation assault against Bergstein and his affiliated entities on behalf of David Molner and Aramid Entertainment Fund Limited. Defendants used the confidential information provided by Tregub to file several lawsuits, initiate involuntary bankruptcy proceedings against Bergstein-affiliated entities, and disparage Bergstein repeatedly in the press and with other entertainment industry players,” according to the lawsuit.
“Ignoring their own and Tregub’s ethical obligations, “Bergstein claims, “Defendants solicited Tregub for confidential and privileged information about Bergstein and his affiliated entities starting in 2009. Defendants thereby encouraged Tregub to breach her fiduciary duty to and contract with Bergstein and his affiliated entities.”
Alex Weingarten from Weingarten Brown is representing Bergstein. Bergstein is seeking at least $100 million in damages from the law firms in the lawsuit.
The lawsuit also says, “Bergstein and his affiliated entities suffered substantial economic harm and loss of revenues. The bankruptcy proceeding interfered with Plaintiffs’ ability to sell film rights they owned, obtain financing for their other ventures, recoup their investments in separate businesses, and participate fully in the 2010 sale of Miramax.”
Bergstein filed a separate lawsuit against Tregub in L.A. Superior Court that is scheduled to begin this week.