HOUSTON – A kidney specialist and his practice have brought
a legal malpractice lawsuit against a Richmond, Va.-based law firm, alleging
the defendant forced them to accept lesser amounts in monetary benefits.
Nephrology Leaders and Associates, PLLC and founder Dr.
Mohammed Atiq Dada sued McGuireWoods, LLP late last month regarding allegedly
poor representation in negotiating and effectuating various joint venture
agreements with American Renal Associates.
The suit explains that the contracts contained redemption
rights or “put rights” clauses, which stated that in the event ARA undertook an
initial public offering, the plaintiffs had the right to put, or sell, the
shares back into the company and ARA was required to repurchase the shares.
The complainants reportedly had the right to sell up to 11
per cent of their membership in each joint venture in the first year in which
the IPO occurs, and up to six per cent in each of the second, third, and fourth
years, at public market valuation determined in the IPO.
McGuireWoods, the original petition says, assured the
plaintiffs that the Put Right Formula complied with any state and federal law,
as well as advised ARA on the legal compliance of its physician joint venture
arrangements in connection with the sale of $165 million of stock to the public
in its IPO.
Court papers assert that the defendant and ARA devised a new
method which would result in less millions being paid to the plaintiff,
labeling the move an “inherent and active conflict of interest.” McGuireWoods
advising ARA purportedly harmed the complainants.
Per the suit, the respondent attempted to hide any wrongdoing
and notified the litigants that the formula they were following was invalid.
Such advice was supposedly a front to force the plaintiffs to accept little
money than agreed upon and enrich ARA.
“Through a series of breaches of fiduciary duty and
unconscionable conduct McGuire Woods held to its other client and despised the
plaintiffs, ultimately causing the plaintiffs millions,” the suit says.
The plaintiffs insist that they lost approximately $5
million because of the defendant’s actions for which they sue.
A jury trial is requested.
Attorneys Lance Christopher Kassab and David Eric Kassab of
The Kassab Law Firm in Houston are representing the complainants.
Harris County 190th District Court Case No. 2017-21479