Where Scott Rothstein’s $1.2 billion Ponzi scheme ended and his defunct law firm began is at best a gray area. Prosecutors want a vast forfeiture plan, seeking all ill-gotten gains tied to Rothstein. In the other corner, attorneys for the bankruptcy trustee overseeing the remains of the Rothstein Rosenfeldt Adler law firm say the government’s reach is too broad.
When the creditors of bankrupt companies draw up lists of litigation targets, auditing firms are often right there at the top. So it was for the creditors trust of the bankrupt insurer Frontier Insurance Group. The trust alleged that Ernst & Young underestimated the reserves Frontier needed to hold, and claimed $140 million in damages, plus interest
The creditors committee in the Lehman Brothers bankruptcy fired a shot Tuesday in a dispute over whether Barclays received an improper “windfall” in its purchase of Lehman’s North American assets and liabilities last September. The dispute has resulted in several motions for discovery and at least three suits. Now, the creditors committee has filed a motion under the terms of the Hague Convention, in the hopes that a U.K.
Judge Dennis Montali is already asking the two main lawyers on the Heller Ehrman bankruptcy to file a revised liquidation plan before the first hearing on it Nov.
A group of about 90 former Heller Ehrman partners has logged a defense against creditors’ claims that the firm was insolvent in 2007, a key point the creditors need to prove to build a fraudulent transfer suit. The brief — which is the first peep from any former Heller partners in the 10-month-old bankruptcy — blames the recession for the firm’s demise and asserts that creditors cannot possibly prove that Heller was undercapitalized by the end of 2007, or that funds were fraudulently transferred thereafter.