SAN FRANCISCO — After two years of litigation, Heller Ehrman‘s banks have tentatively agreed to pay the firm’s estate $20 million and waive their claims against the dissolved firm and its shareholders. A hearing on the proposed settlement is scheduled for March 31.
Heller’s creditors committee sued Bank of America in April 2009, asking for the return of $56 million the bank received shortly before and after the firm filed for bankruptcy. Heller argued BofA lost its claim to the money when it filed documents with the state in which it forfeited its status as a secured lender. BofA claimed it had made a “clerical error” in that filing. The case was expected to go to trial in November.
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