More significant than the relatively small sums that the partners have agreed to pay in is an agreement that they will drop $6.1m of claims for sums they say were outstanding to them. Allan Diamond, the Howrey trustee, said that the agreement - which took 12 months to negotiate - 'eliminates contentious claims that would otherwise develop into costly and time-consuming litigation'.
Liquidating plan
The Washington DC-based global firm had over 700 lawyers in 17 offices at its peak before it went bankrupt in 2011. The settlement with partners on 'unfinished business claims' will interest ex-partners at other bankrupt law firms who have been pursued for money they subsequently made on client work they took with them. The deal was revealed to the US Bankruptcy Court in San Francisco. Mr Diamond said that agreement had been reached with 'all but a few remaining former partners'. He added: 'There remain other complex issues but we are currently working on a liquidating plan.' Source: Wall St Journal
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