Home

Howrey Trustee Files 33 Lawsuits to Recover Funds
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

In advance of the statute of limitations, Howrey’s bankruptcy trustee has filed 33 lawsuits in an attempt to recover millions of dollars in possibly misallocated funds, according to a story written by The American Lawyer. Allan Diamond is hoping to obtain and redistribute $3.57 million that was paid out by Howrey in the 90 days prior to the firm’s filing of Chapter 7 bankruptcy on April 11, 2011.

Diamond, a founding partner of Texas law firm Diamond McCarthy, was appointed trustee of the now defunct Howrey six months after bankruptcy was declared. In that time, he has sought to determine if funds paid to creditors prior to the firm’s collapse were made on a preferential basis, and if so, recover those funds so that they can be distributed more fairly to the firm’s other creditors who have so far been left high and dry.

  
What
Where


Among the creditors named in the 33 lawsuits are Paul Hastings, the Zeughauser Group, Verizon, Thomson Reuters, Baker Hughes Incorporated, and a number of consultants and witness firms. Two former Howrey attorneys are also named in the lawsuits. AM Law reports that Diamond expects to file further lawsuits in the days approaching the April 11 deadline, or reach tolling agreements with parties that will extend the deadline.

Diamond told The American Lawyer that many of the lawsuits have been filed against innocent creditors, but that they are necessary for him to discover which creditors were paid on a “business as usual” schedule and which received unscheduled payments in the run up to bankruptcy. Bankruptcy law requires that all of an entity’s creditors be paid fairly, regardless of connections with the firm and its staff. Diamond must also repay between $15 and $20 million in administrative fees related to the bankruptcy and more millions to Citibank, Howrey’s secured lender, before other creditors can be paid back. “I am confident unsecured creditors are going to get a distribution,” said Diamond.

Diamond is also pursuing claims against former Howrey partners, now working at other law firms, who may have received payments from Howrey while it was insolvent. 21 lawsuits were filed against law firms, four of which have struck tolling agreements.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Litigation Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search Top Ranked Law Firm seeks Senior Litigation Associa...

Apply Now

Mid-level Litigation Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks Mid-level Litigation At...

Apply Now

Junior Patent Prosecution Associate Attorney

USA-DC-Washington

Washington, D.C. office of a BCG Attorney Search Top Ranked Law Firm seeks Junior Patent Prosec...

Apply Now

RELEVANT JOBS

Associate Attorney

USA-CA-Los Angeles

Associate with 1-3 years litigation experience (pref. employment) needed for a well-established Plai...

Apply now

Legal Secretary

USA-NV-Las Vegas

Employment Type: Full-Time   We are a small firm looking for a legal secretary who is ext...

Apply now

Associate Attorney

USA-AZ-Phoenix

Phoenix based plaintiff construction defect litigation law firm is currently seeking an Associate At...

Apply now

Legal Assistant / Paralegal

USA-NY-Middletown

Seeking a full-time legal assistant / paralegal with experience in commercial and residential real e...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top