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Clawback Lawsuit Against Former Dewey Leaders Could be Stayed
Liquidating trustee of Dewey & LeBoeuf, Alan Jacobs, is arguing that his clawback lawsuit against two former law firm heads should not be stayed as they face criminal charges, according to The New York Law Journal.
“The trustee’s urgency in pursuing these claims is heightened by the real risk that [Joel Sanders and Stephen DiCarmine's] assets will dry up while they scramble to defend themselves against the criminal charges and other potential lawsuits,” Jacobs said in documents filed July 4 in the Southern District Bankruptcy Court.
Jacobs is asking for more than $21.8 million from Sanders, the former CFO of the firm and DiCarmine, the former executive director of the firm. The claims made by Jacobs include that the men were awarded contracts with large compensation that required them to do nothing for that money.
DiCarmine and Sanders asked for a stay of the clawback lawsuit until their criminal case is resolved. They have said that unless their bankruptcy case is stayed, they are going to have to argue the criminal case in the court for bankruptcy.
“This is sheer exaggeration,” Jacobs said.
Jacobs also spoke about the two men estimating when their trial will start, which should be in January of 2015.
“That estimate does not include time for delays, mistrials, appeals, retrials, etc., any of which is possible,” Jacobs said. “The request for a stay is, in effect, a request for an indefinite suspension of this case.”Alan Jacobs Asks for Clawback Suit Against Former Dewey Leaders to Continue by Jim Vassallo