A Manhattan lawyer’s exit from the prominent securities firm that challenged Elon Musk’s $55.8 billion dollar Tesla pay package has prompted a public war of words.
Jeroen van Kwawegen said Wednesday that he left Bernstein Litowitz Berger & Grossmann with at least four other partners to launch a new firm, JVK Law. Van Kwawegen, who led Bernstein Litowitz’s corporate governance practice, said he bolted over differences with other partners about the firm’s direction.
“Ultimately, what really happened is we just had a fundamentally different vision about what the law firm should look like, what the culture is that you should have, and whose interests you should be serving first,” van Kwawegen said in an interview. “That includes, for example, being ready to take cases to trial.”
Bernstein Litowitz says van Kwawegen was fired, a claim that he denied. “Mr. van Kwawegen was in fact terminated after a unanimous decision of all remaining members of the firm’s Board, based on a determination of the firm’s Executive Committee that, in its opinion, Mr. van Kwawegen engaged in misconduct that was inimical to the best interests of the firm,” the firm said in a statement.
Such dueling narratives are uncommon at major law firms, where partners often come and go but rarely air internal disputes in public. Bernstein Litowitz is known for representing investors in massive suits against the likes of Musk, Rupert Murdoch, and Warner Bros. Discovery chief David Zaslav.
Van Kwawegen said his new firm will focus on advising institutional investors as regulatory changes weaken guardrails. “Our clients more than ever need counsel that understands this on a deep, fundamental level and is also willing to do something about it by, for example, if necessary taking cases to trial and having the track record to do that,” he said.
JVK Law plans offices in New York, Delaware, and Los Angeles, but is still negotiating leases in those locations.
Ex-Bernstein partner Andrew Blumberg will run JVK’s Delaware outpost. Other Bernstein recruits, including CJ Orrico, Tom James, Eric Reidel, Edward Timlin, Dan Meyer, Ben Potts, and Lauren Cruz, are joining JVK as partners, with some being elevated to partner after serving as senior counsel at their former firm. Another dozen or so other attorneys and paralegals from Bernstein Litowitz are also joining JVK Law across its three locations.
“I am honored that so many of my former colleagues, including eight new partners, are joining me in our new venture and I wouldn’t be surprised if others will follow,” van Kwawegen said.
Bernstein Litowitz said it “felt compelled to clarify” the circumstances surrounding van Kwawegen’s exit. Greg Varallo, the longtime partner who led the shareholder lawsuit against Tesla over Musk’s pay package, will continue to lead the firm’s Delaware practice, it said.
“It is important to emphasize that BLB&G is fully committed to protecting shareholder rights through both our governance and securities practices and that we are always focused on achieving the best result for our clients,” the firm said.
Van Kwawegen was part of the Bernstein team that challenged Musk’s executive pay package at Tesla. Investors ultimately approved a $1 trillion compensation package for Musk last month.
Van Kwawegen also was part of the trial team that secured a $1 billion settlement from Wells Fargo to resolve a federal securities class action lawsuit.
He expects his new firm to build out a securities litigation practice and add more attorneys quickly.
“I could envision us doubling in size or so in the next six months to a year,” he said.
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