Four years after the fall of Howrey LLP, another batch of the law firm’s former partners have agreed to settle with its bankruptcy estate.
That this time, 47 ex-partners are chipping in $75,000—an average of just $1,595 each—but are also agreeing to drop $6.1 million in claims that they were pursuing in the case, according to court filings. Removing those claims means more money will be available for other creditors. The settlement frees the ex-partners from future Howrey-related liability.
Howrey trustee Allan Diamond said in a Tuesday filing in U.S. Bankruptcy Court in San Francisco that the settlement, more than a year in the making, “eliminates contentious claims that would otherwise develop into costly and time-consuming litigation.”
Mr. Diamond claimed the ex-partners owed the estate money they earned when Howrey was allegedly insolvent as well as money paid on employment contracts that he alleges were violated. Some of the settling parties had also been pursued for so-called unfinished business claims
, which claw back money earned on legal assignments that originated at Howrey and were taken to new firms.