Posted Jul 02, 2012 02:43 pm CDT
Buchanan Ingersoll & Rooney has agreed to pay $60 million to settle claims related to the bankruptcy of its former client, Adelphia Communications Corp.
The law firm and its insurers will pay $20 million to the Adelphia Recovery Trust and $40 million to be distributed in a binding mediation to the trust and others with claims against Buchanan, report the New York Law Journal and Reuters. The trust is pursuing claims on behalf of creditors in bankruptcy court.
Adelphia founder and CEO John Rigas and his son, Timothy, the company’s chief financial officer, were both convicted of securities fraud for hiding corporate debt. Buchanan Ingersoll was accused in lawsuits of helping Adelphia prepare false and misleading information for investors.
The law firm has denied wrongdoing, the New York Law Journal says. Law firm spokeswoman Tracie Giozzi issued a statement that Buchanan Ingersoll is pleased to put the matter to rest. “Agreeing to settle the matter allows us to focus on our clients and our goals,” she said.