Three-and-a-half years after Howrey LLP shut its doors, another 31 former partners of the bankrupt law firm have agreed to chip in money to pay back Howrey’s creditors, the Wall Street Journal reported today. In settlement papers filed in bankruptcy court on Friday, Howrey trustee Allan Diamond says that he’s reached deals to bring in close to $1.5 million from the batch of onetime equity partners. That’s on top of a nearly identical settlement reached in May with 60 ex-partners that raised $4.2 million for creditors. The contributions, ranging from $3,532 to $200,000, claw back 16 percent of what partners earned between April 2010 and Howrey’s dissolution a year later — a period during which Diamond argues Howrey was insolvent. (Subscription required.)
http://blogs.wsj.com/bankruptcy/2014/09/22/former-howrey-partners-contr…
For more on law firm bankruptcies and “unfinished business” claims, be sure to read “Is the Unfinished-Business Rule Finished? Recent Decisions Could Close the Book on Hourly Matters” in the September edition of the ABI Journal.
http://journal.abi.org/content/is-the-unfinished-business-rule-finished…