Washington, D.C., law firm Howrey LLP was in a "death spiral" for nearly two years, according to new lawsuits that claim that the firm's partners did not seem to know the depth of its financial problems, the Wall Street Journal reported yesterday. Six lawsuits filed in bankruptcy court this month by the trustee overseeing Howrey's liquidation paint a bleak picture of a firm that was fast to expand but slow to adapt, relying on borrowed money instead of profits to pay its partners. The lawsuits, based partly on the firm's books and records, allege that Howrey's partners were not aware of the true extent of the financial woes until it was too late. Howrey's independent and court-appointed bankruptcy trustee, Allan Diamond, is currently seeking to recover millions of dollars from certain former partners' new firms based on the profits from the work they brought to their new firms.
