Wilkie D. Ferguson Jr. Federal Courthouse in Miami. Credit: Lisa Willis/ALM With Malpractice Funds Shrinking, Eckert Seamans Brokers New Settlement in Par Funding Case
A previous $45 million settlement has been negotiated down to $38 million, the balance of the firm's "eroding" insurance limits.
October 21, 2024 at 12:58 PM
3 minute read
What You Need to Know
- Following mediation, Eckert Seamans is one step closer to finalizing a new settlement for its former partner's role in counseling Par Funding, a cash advance company turned Ponzi scheme that defrauded investors out of hundreds of millions of dollars in the wake of the COVID-19 pandemic.
- The firm previously arranged a $45 million settlement earlier in the year with the Par Funding receivership, although the Supreme Court's decision casting doubt on the validity of bar orders preventing further litigation threw a wrench into that proposed settlement.
Eckert Seamans Cherin & Mellott is inching closer to a $38 million universal settlement for its former partner's role in counseling Par Funding, a Philadelphia-based cash advance company designated a Ponzi scheme that defrauded investors of hundreds of millions of dollars, after months of infighting among those looking to sue the firm took a toll upon its once $50 million insurance policy.
According to a status report filed Oct. 18 in Florida federal court, the court-appointed receiver, led by Ryan K. Stumphauzer and Timothy Kolaya of Stumphauzer Kolaya Nadler & Sloman and aided by Gaetan Alfano of Pietragallo Gordon Alfano Bosick & Raspanti, has reached a master settlement agreement as part of a larger goal to make investors whole, involving Eckert Seamans and three groups of objectors who blocked previous attempts to confirm a $45 million settlement with the firm.
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