He called the allegations "unfounded and meritless" and said that "both the timing of Ms. Austin's lawsuit and its filing in the Los Angeles Superior Court are highly suspect."
"Any lawyer who commonly practices in this area of the law knows that Ms. Austin is required to pursue her claims before a securities arbitration tribunal -- and cannot proceed in state or federal court," he said. "The court filing therefore suggests nothing more than a litigation tactic."
Attorney Steven M. Goldberg, who represents Austin and her husband, as well as West and the others, called Blumenfeld's comments "desperate and preposterous" and contends the lawsuit was properly filed.
Arbitration panels can hear only matters that have occurred within the last six years, he said, whereas the statute of limitations for the court starts when the alleged wrongdoing is discovered.
Austin and her husband learned of the alleged fraud after reading a Los Angeles Times story about the West case in April, according to their lawsuit.
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kim.christensen@latimes.com
