/PRNewswire/ The Algon Group, a specialized financial advisory firm, is pleased to announce that highly-regarded insolvency professional, Edward Weisfelner,.
Brown Rudnick settles $300M malpractice suit over bankruptcy representation
Image from Shutterstock.com.
Brown Rudnick has settled a $300 million malpractice lawsuit alleging that it mishandled its work as a litigation trustee in the 2009 bankruptcy of chemical company LyondellBasell.
In a Jan. 26 order, U.S. District Judge Paul Engelmayer of the Southern District of New York said he had been advised that all claims had settled in principle, report Law360 and Law.com. Terms of the settlement were not disclosed.
Brown Rudnick had filed counterclaims in the suit, which was filed by a successor trustee.
The suit had claimed that Brown Rudnick failed to prove that a company was insolvent when it made a $300 million loan repayment, the articles report. Brown Rudnick had sought to claw back the payment on behalf of creditors but only obtained $12 million.