Law firm Simpson Thacher wins malpractice trial over stock sale

Mariano alleged in a lawsuit that the law firm failed to craft restrictions that would have prevented those funds from short-selling the company's stock starting in late 2015. The firm's negligence led to Patriot National's collapse and bankruptcy, the lawsuit claimed.

Mariano sought over $200 million in damages.

Simpson Thacher said in a statement that the jury verdict "confirms what we have staunchly maintained from the start: our work and advice in connection with the Patriot National transaction were sound and the claims against us were baseless."

Warren Burns, an attorney for Mariano, said in a statement that Simpson Thacher "repeatedly failed" in its obligations to Mariano, but "we recognize that the jury in this case did not agree with our position."

Mariano's lawsuit included related claims of professional malpractice and negligence against Kasowitz Benson Torres, another New York law firm. Mariano hired Kasowitz to pursue litigation against the funds that were short-selling Patriot National's stock, but he alleged the firm failed to alert him to Simpson Thacher's alleged malpractice.

Mariano's case against Kasowitz is on pause and was not decided by the jury on Thursday. Burns previously told Reuters that the jury's ruling on Mariano's claims against Simpson Thacher could affect the case against Kasowitz.

A spokesperson for the Kasowitz firm, now known as Kasowitz LLP, did not immediately respond to a request for comment Thursday.

A Broward County, Florida jury on Thursday found prominent New York-based law firm Simpson Thacher & Bartlett not liable for an insurance administrator's 2018 collapse.