Three-and-a-half years after Howrey LLP shut its doors, another 31 former partners of the bankrupt law firm have agreed to chip in money to pay back Howrey’s creditors.
In settlement papers filed Friday in U.S. Bankruptcy Court in San Francisco, Howrey trustee Allan Diamond says he’s reached deals to bring in close to $1.5 million from the batch of onetime equity partners. That’s on top of a nearly identical settlement reached in May with 60 ex-partners that raised $4.2 million for creditors.
The contributions, ranging from $3,532 to $200,000, claw back 16% of what partners earned between April 2010 and Howrey’s dissolution a year later—a period during which Mr. Diamond argues Howrey was insolvent.
“This one really takes us dramatically far down the road with respect to the former partners,” Mr. Diamond, a name partner at Texas firm Diamond McCarthy LLP, told Bankruptcy Beat on Monday. Settlement talks continue, he said, with a large group of lawyers who landed at Jones Day, and a handful of “stragglers” are also out there. (A Jones Day rep didn’t immediately respond to a request for comment Monday).