Milbank Has Conflicts in Edgio Bankruptcy, DOJ Watchdog Says

Milbank LLP should be prevented from serving as bankruptcy counsel to media content delivery company Edgio Inc. because the international law firm is also representing company directors in shareholder suits, government attorneys said.

The US Bankruptcy Court for the District of Delaware should deny Edgio’s request to hire Milbank as its lead counsel in its Chapter 11 proceedings because the firm will be left with conflicting loyalties to both the company’s bankrupt estate and to individuals who may have harmed the company, the Justice Department’s bankruptcy monitoring division—the US Trustee—said in a filing Tuesday.

“The Debtors have a fiduciary duty ...