Troutman Sanders is standing by its man.
A complaint was unsealed this week that named prominent New York real estate lawyer and Troutman partner Leonard Grunstein as a participant in a scheme to obtain $50 million in kickbacks from a pharmaceutical vendor.
Grunstein is on leave until the matter is resolved, the ABA Journal reports.
But, the firm told the Atlanta-Journal Constitution that it expects he will be back at the firm. “The firm is confident there will be a successful resolution to the case and that Mr. Grunstein will return to work,” Troutman spokesman Mark Braykovich told the Atlanta Journal-Constitution. Troutman is based in Atlanta, though Grunstein out of its New York office.
The complaint does not accuse Grunstein of receiving any kick-back money himself. It summarizes the allegations this way:
Omnicare is a large nursing home pharmacy, and Mariner and Sava operate nursing homes. Omnicare paid Mariner and Sava $50 million to induce them to sign long-term pharmacy contracts pursuant to which they steered their nursing home patients…to Omnicare for pharmacy dispensing services. The defendants…conspired with Omnicare to disguise the $50 million kickback as payment for a Mariner business unit…At the time of Omnicare’s agreement to pay the $50 million, [that unit] had only two employees and no tangible assests apart from accounts receivable valued at less than $3 million.
All entities named in that paragraph are co-defendants. Grunstein represented co-defendant Rubin Schron, who, the complaint says, controlled Sava and Mariner.
Grunstein was at the now-defunct Jenkins & Gilchrist when some of the events described in the complaint occurred.
As we noted yesterday, Grunstein represented Stuyvesant-Town tenant’s association in their big win over Tishman-Speyer.
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