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Clawback Suits May Be on the Way Out


Clawback Suits May Be On The Way Out

The recent court actions have involved law firms hit with so-called unfinished business claims in bankruptcy court. The law firms, Coudert Brothers, Heller Ehrman, and Thelen estates argue that these claims should take legal action in federal district court. The U.S. district court judge Colleen McMahon in Manhattan ruled this on November 2. This was considered a response to Akin Gump Strauss Hauer & Feld, Duane Morris, Jones Day

, and seven other firms' actions filed in August. It posed that the allegations filed against them in 2008 by the Coudert Brothers estate should be removed from insolvency court. William Brandt is a firm that advises bankrupt law firms. It foresees McMahon's ruling to be reshaping the legal scenario for firms involved in clawback suits around the country.

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