Lowenstein Sandler Defends $685,000 Fee Deal in Medley Bankruptcy

Lowenstein Sandler LLP made a “substantial contribution” to the bankruptcy proceedings of a Medley Management Inc. unit, justifying its $685,000 fee guarantee, the law firm said.

The law firm responded Thursday to objections from the Securities and Exchange Commission and the Justice Department’s bankruptcy watchdog, the U.S. Trustee. The agencies had objected to a settlement under which Lowenstein would receive more than half of its $1.1 million in legal fees before other unsecured creditors are paid out by a liquidating trust.

Lowenstein exacerbated Medley LLC’s Chapter 11 case instead of facilitating a speedy resolution, the agencies said.

The objections followed ...