A look inside the death of a firm isn’t pretty, a dictum never more true than at Heller Ehrman, where the last stages were marked by spin from firm leaders that may have crossed the line into subterfuge. At least that is the position of firm creditors, who allege that Heller paid $150 million in bonuses and salaries at a time when the firm’s capital was dwindling.
The ugly innards have become visible in documents produced during mediation talks. Creditors and shareholder groups have met at least twice to discuss a settlement before Northern District bankruptcy court judge Randall Newsome. The documents were obtained by The Recorder, a sibling publication of The American Lawyer, and show that Heller Ehrman’s leaders discussed the firm’s “mortality” while assuring its own partners that the firm was sound.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
