Bankruptcy Law

BigLaw Firms Are Among Creditors of Hedge Fund that Filed for Bankruptcy

Some of the nation’s top law firms are listed as creditors of a hedge fund that filed for bankruptcy protection last week. Proskauer Rose is the top unsecured creditor of the fund run by Alphonse “Buddy” Fletcher Jr., the Wall Street Journal Law Blog reports. The firm has a claim…

Jul 6, 2012 12:37 PM CDT

Dewey Seeks Bankruptcy Judge OK to Pay Remaining Workers Up to $450K in ‘Morale’ Bonuses

Dewey & LeBoeuf is seeking bankruptcy court approval to pay up to $450,000 in “morale” bonuses to help retain the 52 workers it needs to wind up its operations over the next few months. However, five key employees could get another $250,000, for a total bonus pool of $700,000, depending…

Jul 5, 2012 8:25 PM CDT

Buchanan Ingersoll Settles Adelphia-Related Claims for $60M

Buchanan Ingersoll & Rooney has agreed to pay $60 million to settle claims related to the bankruptcy of its former client, Adelphia Communications Corp. The law firm and its insurers will pay $20 million to the Adelphia Recovery Trust and $40 million to be distributed in a binding mediation to…

Jul 2, 2012 2:43 PM CDT

Individual Dewey Partners and Banks That Loaned Them Equity to Pay to Firm Are Now at Odds

It isn’t just Dewey & LeBoeuf that’s reportedly laden with debt. A number of individual partners borrowed money from banks in recent years to fund their capital contributions to the firm and are mulling options as the banks that lent to them are making efforts to collect payments on the…

Jun 25, 2012 6:49 PM CDT

Lawyer Convicted of Hiding Bankruptcy Asset for Girlfriend Despite Defense Claim He’s Not a ‘Moron’

A Wisconsin lawyer and a former client who is now his girlfriend were found guilty in federal court there on Wednesday of crimes related to her bankruptcy. Walter Stern III, did not represent Norma Leonard-Allen in the bankruptcy case and claimed he was unaware of it at the time even…

Jun 21, 2012 3:31 PM CDT

Former Dewey Chairman Will Be Excluded from Proposed Bankruptcy Settlement with Ex-Partners

Former partners at Dewey & LeBoeuf learned in a conference call on Tuesday that they will be presented with a plan to settle creditor claims against them in the next few weeks. Only one person would not be covered by the deal—former chairman Steven Davis, report the Wall Street Journal…

Jun 20, 2012 1:28 PM CDT

Lead Bankruptcy Law Firm for Dewey & LeBoeuf Seeks Court OK to Charge Up to $935 Per Hour

On the eve of a Tuesday afternoon conference call at which former partners of Dewey & LeBoeuf will learn more about the financial issues they face in the law firm’s ongoing New York bankruptcy case, another significant expense could be looming. In a Friday filing, the firm’s lead bankruptcy counsel,…

Jun 18, 2012 10:10 PM CDT

Law Grads ‘Indentured Servants’ to Loans, Law Prof Says; Law School Crisis a Symptom of Weak Economy

The student debt crisis, which could see this fall’s law school entrants hold an average of $150,000 in educational loans by graduation, is a symptom of large-scale social and economic turmoil across the U.S., one law school professor says. Paul Campos, professor of law at University of Colorado at Boulder…

Jun 14, 2012 8:03 PM CDT

Former Dewey Partner’s Suit Compares Firm Leaders’ Lateral Partner Recruitment to ‘Ponzi Scheme’

Updated: A former partner of Dewey & LeBoeuf has filed suit against leaders of the now-bankrupt law firm, contending that they engaged in a multiple acts of deceit after the 2007 merger that created the firm and misrepresented its revenue in an effort to persuade incoming lateral partners to contribute…

Jun 13, 2012 9:02 PM CDT

BigLaw Bankruptcy Lawyers Opposing Fee Transparency Are ‘Out of Touch,’ Editorial Says

Proposed rules requiring more scrutiny of attorney fees in large bankruptcy cases are drawing opposition from large law firms. Lawyers “responded with hostility” to the proposals at a Justice Department meeting last week, Reuters reported. The proposals by the DOJ’s U.S. Trustee Program would require lawyers to disclose billing rates…

Jun 13, 2012 11:00 AM CDT

Bankruptcy Filing Shows Gibson Dunn Superstar Makes $1,800 an Hour

A partner at Gibson, Dunn & Crutcher who challenged a California initiative banning gay marriages is back in the limelight, this time for his pricey fees. Bankruptcy filings reveal that former Solicitor General Ted Olson charges $1,800 an hour, the Wall Street Journal Law Blog reports. It’s the highest rate…

Jun 7, 2012 11:00 AM CDT

Ex-Client Sues Stradley Ronon, Says Securitization Errors re $200M Subprime Loans Cost It Big Bucks

A former client of Stradley Ronon Stevens & Young sued the Philadelphia-based law firm on Monday, contending that errors in documenting some $200 million in loans to a subprime lender cost a bank involved in making the loans millions of dollars. After the subprime lender, Taylor Bean & Whitaker Mortgage…

Jun 6, 2012 10:38 PM CDT

Brown Rudnick to Represent Creditors in Dewey Bankruptcy; Partners Tap Kasowitz and Flemming Firms

After a May 28 bankruptcy filing by Dewey & LeBoeuf, lawyers are signing on to represent those with a stake in what is expected to be a hotly contested and long-running case. Brown Rudnick will be counsel to the committee of unsecured creditors, Reuters reports, and two law firms are…

Jun 5, 2012 4:29 PM CDT

Hughes Hubbard Seeks Court OK of Bill for First 4 Months of MF Global Bankruptcy: $17 Million

With trustee James Giddens at the helm, Hughes Hubbard & Reed has submitted its bill for the first four months of its work on the MF Global Inc. bankruptcy—$17 million. It must be approved by the U.S. Bankruptcy Court in Manhattan before it is paid, Reutersreports. The bill covers the…

Jun 5, 2012 1:42 PM CDT

Dewey’s Chief Restructuring Officer: Estate Is Probing Claims Against Ex-Partners, Hiring Firms

Dewey & LeBoeuf’s chief restructuring officer says he is investigating potential claims against former partners and the firms that hired them. But the estate has not considered possible claims against Dewey’s former leadership, according to Joff Mitchell, senior managing director at restructuring firm Zolfo Cooper. Mitchell talked to the Wall…

Jun 4, 2012 11:58 AM CDT