While I can't speak for KT Engineering, I know that Davis Polk does extensive due diligence on potential clients. Decades ago it was the go-to firm for JPMorgan, but things are much different nowadays for all those white shoe firms.
Any scandal would, not could, would cause them millions of dollars of losses. It's simply not worth the risk to pick up, what, 20K in fees?
Davis Polk is a go to law firm for Dodd-Frank work and it has an alumni as a NY State senator. Way, way, way too much at stake to risk.
EARS was a $5 stock not long ago. I'm thinking it tapped Davis Polk for possible bankruptcy or other restructuring work. They are going to be bumped down to OTC land soon.
Anyway, sorry to ramble, do you know if the SRO thing means anything?
Know What You Own. My posts should not be construed as investment advice.