The trustee handling the break up of defunct law firm LeClairRyan has agreed to a $21 million settlement of fraud and other claims against alternative legal services provider UnitedLex.
The firm’s downfall, which led it to file for bankruptcy in 2019, sparked claims that its joint venture with UnitedLex was manufactured to benefit the LeClairRyan’s co-founder. Bankruptcy trustee Lynn Tavenner has also sought to claw back compensation paid to firm partners shortly before the firm closed.
Lawyers for Tavenner detailed the proposed settlement in an April 19 hearing in Richmond, Va. CNA Financial Corp., UnitedLex’s insurer, would pay $12.25 million, ...
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