The bankrupt firm’s trustee, Houston lawyer Allan Diamond, is seeking approval for a settlement he has reached with the Attorneys’ Liability Assurance Society which could inject between $5.2m to $7.6m into the Howrey estate, according to the Washington Post.
‘Unfinished business claims’
Now two years into chapter 11 proceedings, Mr Diamond has also moved to file lawsuits against seven firms over ‘unfinished business claims’ involving ex-Howrey lawyers who took cases onto new firms.
According to the report, the suits were filed in US Bankruptcy Court in San Francisco against Haynes and Boone; Neal, Gerber & Eisenberg; Kasowitz Benson Torres & Friedman; Hunton & Williams; Venable; Sheppard & Mullin and Levenfeld Pearlstein.
Settlements
Mr Diamond has also reportedly filed suits against Dorsey & Whitney; Kilpatrick Townsend & Stockton; Ropes & Gray; Shearman & Sterling; Ralls & Niece and Davidson Law Group.
Mr Diamond also confirmed that he plans to file more lawsuits soon.
Agreements have already been reached with several other firms, most notably settlements with Holland & Knight and Fenwick & West that will bring in at least $41,000 to the estate.
Howrey’s sole secured creditor, Citibank, is owed around $34 million.
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