Jackson Walker Clawback Fees Could Go to Creditors, DOJ Says

Jackson Walker LLP should be denied its request to stop creditors of a bankrupt hand sanitizer company from getting a cut of fees the law firm could be required to return over an ethics scandal, the Justice Department’s bankruptcy monitor said.

Texas-based Jackson Walker’s push to deny creditors from seeking a new potential pot of hundreds of thousands of dollars in disgorgement fees from its client, 4E Brands Northamerica LLC, is “based on a false premise,” the US Trustee told the US Bankruptcy Court for the Southern District of Texas in a court filing Tuesday.

4E’s Chapter 11 case will ...