Zucker Goldberg & Ackerman is expected to close, making 289 layoffs. Daniel Stolz of bankruptcy law firm Wasserman, Jurista & Stolz, is acting for the firm. He said: 'The clients have driven Zucker Goldberg to this point. The regulations and compensation structure that the large banks have imposed on firms like Zucker Goldberg do not allow them to make a profit.'
Insufficient profitability
Zucker Goldberg filed a notice with the New Jersey Department of Labor last month to say that it expected to close on August 24. The firm has just 12 lawyers but a high number of paralegals and support staff. The notice gave the reason for closure as 'Current and anticipated profitability insufficient to sustain current operations'.
Draconian rules on billing
Individual clients of the firm appear to have stopped paying fees to it in large numbers, passing on penalties they received from their creditors. Bank clients appear to have adopted an approach used by government-backed lenders which tightened rules on payment of fees. Mr Stolz said some of the rules used here were 'draconian' and required detailed explanations of spending and consumed staff time. Source: New Jersey Law Journal
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