A federal court judge in Chicago has ruled that entrepreneur Michael Lynch forged documents in a malpractice case against Seyfarth Shaw LLP. The finding may set the stage for the dismissal of the case against the prominent Chicago law firm.
Lynch accused Seyfarth of acting negligently by advising him in 1998 to personally guarantee a $30 million loan obtained by McCook Metals LLC, Lynch's aluminum plate company that filed for bankruptcy in 2001.
In response, Seyfarth alleged that Lynch had fabricated three documents that supported his malpractice allegations. Lynch denied any wrongdoing during a two-day trial last week before U.S. District Court Judge Mark Filip.
At a Tuesday court hearing, Filip said, "Mr. Lynch did repeatedly, intentionally and knowingly give false testimony in the proceeding, and the explanation . . . is that it was an attempt to cover up the fact that he had fabricated documents."
There was no evidence of impropriety by any of Lynch's lawyers, he added.
The judge implied that he would dismiss Lynch's malpractice case, but said a written opinion would be issued in about two weeks, according to a transcript.
That kind of thing can get you into serious trouble in front of a federal judge. Details here from the Chicago Tribune.