Vyaire Medical Sued by Covington, Reed Smith Over Unpaid Legal Fees

Covington & Burling LLP and Reed Smith LLP sued bankrupt breathing-support company Vyaire Medical Inc. over unpaid legal fees from an insurance coverage dispute.

Vyaire settled the case with its product recall insurers in June for an undisclosed amount without the law firms’ knowledge or involvement, even though Covington and Reed Smith spent millions representing the ventilator maker under contingency fee arrangements, the firms said in a Monday complaint in the US Bankruptcy Court for the District of Delaware.

Vyaire has “refused to negotiate or even discuss, much less pay, the amounts owed” under the contingency fee agreements and New ...