Bankruptcy Law News

Puerto Rico Board Picks Brown Rudnick for Possible Debt Suits

Nov. 29, 2018, 9:37 PM

Brown Rudnick LLP will investigate any potential claims that Puerto Rico might have relating to debt the commonwealth and its agencies sold leading up to the island’s fiscal crisis and bankruptcy.

Puerto Rico’s federal oversight board hired Boston-based Brown Rudnick as claims counsel, the board said in a Nov. 29 statement. It will advise the board’s special claims committee on any potential litigation.

The firm will review an independent investigative report released in August that explored how Puerto Rico racked up $74 billion of debt as its economy shrunk.

The board will pay Brown Rudnick $790 per hour for all attorneys and $270 per hour for paralegals and other non-lawyer staff, according to the firm’s contract, posted on the board’s website.

The investigative report highlighted possible misstatements or omissions in disclosure documents for some sales-tax bond sales and an offering of general-obligation bonds.

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To contact the reporter on this story: Michelle Kaske in New York at mkaske@bloomberg.net

To contact the editors responsible for this story: James Crombie at jcrombie8@bloomberg.net William Selway

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