Howrey LLP’s former partners have settled to make payments of $4.2 million to the now defunct firm’s estate via a deal in which Howrey’s trustee labels it as an important move to making a plan in repaying back its creditors.
The planned deal, filed recently in the San Francisco U.S. Bankruptcy Court, feature contributions amounting from $21,000 to $192,000 each from 60 of the firm’s ex-equity partners. Allan Diamond, a Howrey Trustee, is seeking to recover money the partners were paid during the law firm’s bankruptcy.
Diamond indicated he completed the deal for nearly a few years of negotiations and will utilize the settlement outline to gain similar agreements with the remaining ex-partners. He also said he’ll file a lawsuit on the remaining attorneys who refuse to settle.
Diamond also reached settlements with several firms who have “unfinished business claims” seeking some of the earnings made from working at Howrey LLP.
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