Latham & Watkins asks to drop sanctioned VTB Bank in lawsuit over downed flight MH17
Los Angeles law firm Latham & Watkins has asked for permission to drop Russia’s state-owned VTB Bank as a client, in a lawsuit over claims the sanctioned bank funded the militia group that shot down Malaysia Airline Flight 17.
In a filing to a New York court, Latham & Watkins asked for permission to withdraw from acting on behalf of VTB Bank, as it claimed the bank had not filed any objection to its decision.
The request comes after the Los Angeles law firm first took on VTB Bank as a client after an American family sued the sanctioned Russian institution over claims it funded a Russian separatist group that shot down a plane flying over Ukraine.
The lawsuit claims Sberbank and VTB Bank bankrolled the Donbass separatists that brought down MH17 near the Ukrainian village of Hrabove, during its journey from Amsterdam to Kuala Lumpur. The Russian banks have previously denied any role in the incident.
The US law firm first took on VTB Bank as a client after the family of 19-year-old Dutch-American citizen Quinn Lucas Schansman, who was killed after MH17 was hit by a Russian-made surface-to-air missile, sued the Kremlin backed bank in October 2020.
Latham & Watkins noted that VTB Bank now has “ample time” to secure new counsel, as the preparation phase of the trial is set to remain open until January 2023. The law firm argued the situation means it can withdraw from the case “without material adverse effects on the client”.
The request comes after investors suing the Kremlin raised concerns Russia will use law firms’ exits to avoid paying creditors, after White & Case pulled out of representing Russia in a $57bn (£43bn) lawsuit.