A top U.S. law firm committed malpractice by advising executives at an investment management firm to accept illegal late mutual fund trades from three hedge funds, a lawsuit claims, TheStreet.com reports.

The firm, Piper Rudnick, allegedly advised executives from Brean Murray, an investment banking and investment management firm, to take late trade requests from three hedge funds – Canary Capital, Veras Investment Partners and Tewksbury Capital. Now those executives, Ryan Goldberg and Michael Grady, face what they call "significant sanctions." Their lawsuit seeks more than $1 million in legal expenses and lost wages.

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