Heller Estate Hires Counsel for Possible Suit Over Loss of IP Group
A law firm hired as special counsel for the estate of law firm Heller Ehrman is considering whether to pursue a lawsuit against Covington & Burling and the 14 Heller partners who jumped there.
The Recorder reports on the potential suit, basing its story on bankruptcy court filings and other sources. The departures of the 14 intellectual property partners last September caused Heller to default on a provision in an agreement with its lender limiting partner losses. Some observers also suggest the partner defections may have been a factor in the collapse of merger talks with Mayer Brown, although IP partner Robert Haslam has said Heller was long aware of the IP group’s intention to leave.
The special counsel, Lovitt & Hannan, is investigating whether to pursue a suit over the IP group loss based on claims of breach of fiduciary duty and unfair competition.
