Welcome

Edelson PC Drops Lender From Boeing Lion Air Settlement Suit

Dec. 11, 2020, 7:10 PM

Edelson PC has moved to dismiss one of the lenders named in its lawsuit alleging that Thomas Girardi, his law firm Girardi Keese, and others misappropriated settlement funds and money owed for attorneys’ fees arising out of the firms’ joint representation of plaintiffs in litigation against Boeing over the crash of Lion Air flight 610.

The only claim brought by Edelson against Stillwell Madison LLC in its suit to recover the funds was “for an accounting,” which Edelson says the company has now provided.

The information produced by Stillwell Madison LLC shows “it did not take or otherwise misappropriate any of the funds from the Lion Air settlements,” according to the motion filed in the U.S. District Court for the Northern District of Illinois, Thursday.

Because Stillwell demonstrated that it didn’t receive funds “in any way traceable to the Lion Air settlements,” it “faces ‘no liability at all’” Edelson said.

On December 3, Judge Thomas M. Durkin, who presided over the Boeing litigation at the center of Edelson’s suits, orderedGirardi Keese to “file a written response to show cause for why it should not be held in contempt” over its alleged failure to pay out funds to its clients.

A telephone hearing on Edelson’s motion to show cause, filed December 2 on behalf of settling members in the Boeing matter, is scheduled for Monday.

Girardi Keese didn’t respond to Bloomberg Law’s earlier requests for comment on Edelson’s claims.

The case is Edelson PC v. Girardi, N.D. Ill., No. 1:20-cv-07115, motion to sever claims 12/10/20.

To contact the reporter on this story: Holly Barker in Washington at hbarker@bloombergindustry.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Steven Patrick at spatrick@bloomberglaw.com

To read more articles log in.

Learn more about a Bloomberg Law subscription.