The decision tossing claims by U.S. Bank is a victory for Verizon and its lawyers at Weil, Gotshal & Manges; Kellogg, Huber, Hansen, Todd, Evans & Figel; and Wilmer Cutler Pickering Hale and Dorr, who've worked on the litigation for almost three years.
A federal judge in California disqualified Winston & Strawn from additional work on the city of San Bernardino's bankruptcy proceedings on Thursday, ruling that the firm has an insurmountable conflict.
The deal resolves a long and contentious fight with ResCap and its creditors over claims that Ally stripped its bankrupt subsidiary of valuable assets and turned it into a dumping ground for mortgage-related liabilities.
The nation's largest public pension fund wants to bar Winston & Strawn from further work on bankruptcy proceedings involving the California cities of Stockton and San Bernardino.
The Justice Department has been accused by a bankruptcy judge of engaging in "unacceptable conduct" in reaching a settlement with Kaye Scholer, which in turn has been blamed for acting unethically in advising GSC Group in the investment firm's Chapter 11 proceedings. Judge Shelley Chapman's attack on the department came during a Tuesday hearing.
A week after the firm resolved claims that it mishandled its application to work on GSC Group's Chapter 11 filing, two Kaye Scholer lawyers are due to testify Tuesday about what a key figure in the case said at a critical meeting with Justice Department lawyers.
Another settlement domino toppled this week in the Heller Ehrman bankruptcy, when Greenberg Traurig agreed to a $4.9 million deal to resolve claims that one of its partners failed to disclose a conflict of interest with Heller lender Bank of America.
More than four years after the global entrepreneur R. Allen Stanford was exposed as a Ponzi schemer, thousands of investors who bought Stanford's phony CDs could be close to seeing their first checks in the mail.
Nearly two years to the day after Washington, D.C.-based litigation shop Howrey dissolved, the trustee unwinding the defunct firm's Chapter 11 estate has launched the first round of lawsuits aimed at clawing back money earned by former Howrey partners from assignments they brought to the firms where they landed. More suits, and settlement talks, are in the works.