Howrey trustee sues seven more law firms
Seven more law firms are facing clawback lawsuits filed as the bankruptcy trustee for Howrey seeks to recover fees earned by lawyers who jumped to the new firms and took Howrey cases with them.
Bankruptcy trustee Allan Diamond filed the suits on Friday and says more are being planned, the Washington Post reports. Diamond continues to negotiate with 50 law firms. He filed suits against six other law firms last month.
Meanwhile, Diamond reached a settlement on Friday with Howrey malpractice insurer Attorneys’ Liability Assurance Society, the Post says. The deal calls for a payment of $5.2 million to $7.6 million to the Howrey estate.
Last month Diamond reached clawback settlements with two law firms. Holland & Knight will pay $26,000 and 11 percent of future attorney fees through March 2014 in a former Howrey case, while Fenwick & West will pay $15,000, according to the Post and prior coverage by the Am Law Daily.
The seven firms sued on Friday are Haynes and Boone; Neal, Gerber & Eisenberg; Kasowitz Benson Torres & Friedman; Hunton & Williams; Venable; Sheppard & Mullin; and Levenfeld Pearlstein.