White Oak Global Advisors has filed a high-stakes legal malpractice lawsuit in New York County Supreme Court against the
major U.S. law firm King and Spalding LLP and former partner Terry Novetsky, seeking over $1 billion in damages for alleged misconduct that White Oak claims undermined its business interests and breached ethical duties.
Background of the Dispute
According to the complaint, White Oak Global Advisors an investment advisory firm specializing in private credit and lending and its healthcare affiliate engaged King and Spalding to provide legal representation related to a healthcare-based investment fund. The lawsuit centers on how the law firm allegedly acted against White Oak’s interests while representing the company and its affiliate.
White Oak asserts that Novetsky, while still a partner at King and Spalding, secretly aided Isaac Soleimani, who was then the CEO of White Oak Healthcare, in a scheme to “usurp control” of the healthcare investment fund rather than protect the client’s interests as legal counsel.
Allegations of Malpractice and Conflict of Interest
The lawsuit paints a concerning picture of alleged legal malpractice and conflict of interest. White Oak claims that Novetsky and King and Spalding devised a “multi-step plot” to shift control of White Oak Healthcare to Soleimani, including allegedly drafting and executing litigation tactics that were not in the client’s best interest but instead served Soleimani’s objectives.
Central to White Oak’s claim is the allegation that communications between Novetsky and Soleimani were conducted privately through personal Gmail accounts a detail White Oak’s legal team describes as illustrating the covert nature of the alleged misconduct. “The paper trail is damning,” White Oak’s complaint states, emphasizing the depth of internal exchanges that it says contradict professional integrity standards.
The complaint further asserts that this misconduct prevented White Oak from successfully launching
two major healthcare investment funds, each capable of commanding billions in capital. White Oak says the firm lost “hundreds of millions of dollars” in business opportunities as a direct result of King and Spalding’s alleged malpractice, claiming a breach of fiduciary duty and ethical obligations owed to their client.
Damages Sought in the Lawsuit
White Oak’s legal team is pursuing more than $1 billion in total damages, a figure that includes at least $500 million in punitive damages aimed at penalizing King and Spalding for what it calls unprecedented conflict and breach of duty.
The lawsuit emphasizes both compensatory and punitive elements: compensatory damages intended to recover financial losses from failed fund launches and punitive damages to address wrongful conduct that allegedly undermined White Oak’s ability to create and manage high-value healthcare investment funds.
Defendants’ Status and Response
As of the latest filings, King and Spalding has not publicly responded to the lawsuit or issued an official statement regarding the allegations. There has also been no record yet in
public court filings of which law firm or attorneys will represent the firm in this matter.
Novetsky, the former King and Spalding partner named in the complaint, is also yet to respond. According to White Oak’s filing, Novetsky left King and Spalding in 2023 and has since been associated with another, unnamed law firm where White Oak alleges the alleged scheme continued.
Interestingly, Soleimani who is central to the factual narrative in the suit is not named as a defendant in White Oak’s malpractice case. Soleimani was reportedly terminated as CEO of White Oak Healthcare in September 2023, but he is not a party to this specific malpractice complaint.
Legal and Industry Implications
This case underscores the potential legal and ethical risks law firms face when representing clients with complex financial structures and high-stakes investment products. If White Oak’s allegations are proven, it could highlight significant concerns around conflicts of interest, attorney loyalty, and fiduciary duty in sophisticated corporate legal practice.
Legal malpractice lawsuits against major law firms especially ones seeking damages exceeding a billion dollars are rare, but this case follows other contested matters involving large firms and alleged malpractice, suggesting increasing scrutiny on legal counsel behavior in high-value corporate and investment transactions. Potential industry observers and legal ethics commentators will likely be watching closely as the litigation unfolds.
What Happens Next
The case, captioned
White Oak Global Advisors v. King and Spalding, is pending before the New York County Supreme Court, where both sides will have an opportunity to present motions, responses, and evidence as the litigation progresses. Given the magnitude of damages sought and the seriousness of the allegations, this lawsuit could extend over months or even years before reaching resolution through settlement or trial.
For legal professionals and business clients alike, the lawsuit reinforces the critical importance of transparent, conflict-free legal representation and underscores how alleged breaches of
professional ethics can escalate into massive financial disputes.
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