Jul. 21 at 12:27 AM
Muddy Waters Capital has asked a federal court in Texas to disqualify Quinn Emanuel from representing Techtronic Industries in its lawsuit against the activist short seller. Muddy Waters argues the law firm previously represented both the firm and founder Carson Block in federal investigations involving activist short-selling, obtaining confidential information related to its business model, trading practices, and research operations that are relevant to the current case.
Techtronic, maker of Milwaukee power tools, sued Muddy Waters last year, alleging it published defamatory reports to profit from declines in the company's share price. Muddy Waters denies the allegations and claims Quinn Emanuel faces an ethical conflict. The law firm has rejected the motion and intends to oppose it. Carson Block also cited multiple recent conflict-related disqualifications involving Quinn Emanuel as evidence of a broader pattern.
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