Bankruptcy Law News

Weil Gotshal Overbilled for Ditech Bankruptcy, U.S. Trustee Says

Dec. 6, 2019, 6:45 PM

Weil Gotshal & Manges LLP’s $17.8 million fee for representing Ditech Holding Corp. in its Chapter 11 reorganization case should be substantially reduced, the Justice Department’s bankruptcy watchdog told a New York federal court.

The law firm’s bill for representing the mortgage company since its February bankruptcy filing exceeds what’s “reasonable, necessary, and beneficial,” the U.S. Trustee said in a Dec. 5 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The trustee seeks a reduction of $451,000, plus an adjustment for the firm’s alleged overreaching on hourly billing rates, according to the filing. The firm...

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