Heller Creditors Seek $24M in Pension, Argue Firm was in Red As Early As '07
Hoping to show that Heller Ehrman was insolvent as early as 2007, creditors of the dissolving law firm are arguing that some $24 million in pension contributions were fraudulent transfers they are entitled to claw back from the pension fund and/or firm partners.
The firm’s dissolution committee has agreed to “set aside” about $13.8 million of the roughly $49 million in pension plan assets for creditors to haggle over, reports the Recorder.
Meanwhile, the firm has collected about $23 million of its $77 million in accounts receivable since filing for bankruptcy in December.
As discussed in earlier ABAJournal.com posts, litigation is being pursued by and against the firm concerning capital repayments made to some retired partners, required wage and severance payments that allegedly were not made to former employees, and potential malpractice, among other issues.
Earlier related coverage:
ABAJournal.com: “Ex-Heller Chair Denies That Partners Were Paid $9M in Phony Profits”
ABAJournal.com: “Report Says Heller Inflated Profits to Retain Partners, Seeks $106M from Lawyers”
