The claw back issue in ‘unfinished business’ has currently gained importance with the judge in the Coudert Brothers’ case having certified her first order for appeal. The Dewey estate too is banking on proceeds and claw backs from ‘unfinished business’ to deal with creditors.
The trustee for Howrey said that he prefers to negotiate deals to recover Howrey’s fair share of the profits, though he would sue if he has to. “I’ll do what I have to do,” said Diamond in an interview last week, stating that he expects claw backs to yield a significant amount of money. At present, Howrey’s creditors are owed more than $100 million.
The seventy firms on the list of Diamond include firms like Winston & Strawn LLP and Jones Day.
Howrey dissolved in March 2011 and later in the year entered Chapter 11 bankruptcy.
This article is based on a report from the Wall Street Journal Law Blog written by Jacqueline Palank.