legal fees

Rudy Giuliani targets Donald Trump for ‘unpaid legal fees’ in new bankruptcy filing

Rudy Giuliani targets Donald Trump for ‘unpaid legal fees’ in new bankruptcy filing

Donald Trump’s former lawyer Rudy Giuliani has listed a claim against the one-term president over unpaid legal fees in a new bankruptcy filing.

The ex-New York City mayor includes a “possible claim for unpaid legal fees against Donald J Trump.” in the 26 January filing, which states that the amount is “undetermined.”

Mr Giuliani filed for bankruptcy last month, days after a federal judge ordered him to “immediately” pay more than $148m to a pair of Georgia election workers a jury determined he defamed.

Mr Giuliani represented Mr Trump in a string of unsuccessful lawsuits contesting the results of the 2020 election that he lost to Joe Biden.

Mr Trump’s legal fees owed to Mr Giuliani have previously been reported. The New York Times wrote in August 2023 that “Mr Trump has never explicitly told Mr Giuliani why he is effectively stiffing him, but the former president has pointed out that he lost the cases related to the election.”

Rudy Giuliani targets Donald Trump for ‘unpaid legal fees’ in new bankruptcy filing

Rudy Giuliani speaks to members of the media on 21 January 2024 in Manchester, New Hampshire (Getty Images)

The newspaper reported that the former president told his aides that he didn’t want Mr Giuliani to receive “a dime” unless he

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January 30, 2024 by ATTORNEY

J&J’s first attempt to escape cancer claims with bankruptcy failed. Now it’s trying again

Johnson & Johnson’s first attempt at using bankruptcy to escape claims that its popular baby powder caused cancer was an expensive gamble that drew public scorn and ended in failure.

But on Tuesday, just hours after a judge officially ended that first effort, J&J tried the gambit again. The company put the same subsidiary that had been tossed out of bankruptcy court back into Chapter 11, this time with a plan to pay $8.9 billion to resolve the decades-old cancer claims. The move has already drawn the ire of some victim lawyers and raised eyebrows among legal scholars, who are asking why this time will be any different.

“They are taking a massive gamble here,” said Lindsey Simon, a University of Georgia law professor who has studied how corporations use the U.S. bankruptcy rules to resolve mass-tort suits. “This Chapter 11 case could very well go the same way as the first one did — kicked out of court.”

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J&J faces two major hurdles: it must survive any new legal challenge from opponents who are likely to argue the second case is just as flawed as the first,

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April 9, 2023 by ATTORNEY

FTX could pay over $2,100 per hour for bankruptcy lawyers

By Dietrich Knauth and Andrew Goudsward

(Reuters) – Bankrupt crypto exchange FTX has asked a U.S. bankruptcy judge for permission to pay its top restructuring lawyers as much as $2,165 per hour, an unusually high rate for a company that cannot afford to repay all of its debts.

FTX declared bankruptcy on Nov. 11, collapsing amid a wave of customer withdrawals. Federal prosecutors have charged founder Sam Bankman-Fried with stealing billions of dollars in FTX customer assets to plug losses at his hedge fund, Alameda Research, and two of his former associates have already pleaded guilty. Bankman-Fried is scheduled to be arraigned in New York on Thursday.

New York-based law firm Sullivan & Cromwell is representing FTX in its Chapter 11 case and guiding its efforts to return assets to customers. FTX late Wednesday asked the Delaware federal judge overseeing the case for approval to pay the firm’s partners and special counsel between $1,575 and $2,165 per hour for their work.

The top lawyers’ rates far exceed the $1,300 per hour billed by FTX’s new CEO John Ray, who also filed an application with the court late Wednesday.

Court-approved billing rates for bankruptcy attorneys did not cross the $2,000-per-hour mark

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January 4, 2023 by ATTORNEY

Crypto meltdown a boon for U.S. bankruptcy lawyers

Crypto meltdown a boon for U.S. bankruptcy lawyers

The value of bitcoin has dropped 65 per cent so far this year, and large law firms can rake in more than $100 million in legal fees during a long-running bankruptcy, experts say.

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Dec 03, 2022  •  5 days ago  •  3 minute read

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Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken Nov. 28.
Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken Nov. 28. Photo by DADO RUVIC /REUTERS

Turmoil in the cryptocurrency industry has rattled major exchanges and sent the value of digital assets tumbling, but at least one group stands to gain: bankruptcy lawyers.

High-profile bankruptcies involving crypto exchange FTX, hedge fund Three Arrows Capital and crypto lenders BlockFi, Celsius Network and Voyager Digital Ltd are generating new opportunities – and big fees – for law firms that counsel troubled companies.

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December 9, 2022 by ATTORNEY

Trump PACs paid $2 million this year to law firms representing January 6 witnesses

The biggest recipient of payments from Trump’s political committees is Elections, LLC, a firm that employs several former Trump campaign lawyers and former White House lawyer Stefan Passantino, who at one point represented a key hearing witness, Cassidy Hutchinson. Passantino hasn’t answered CNN’s previous questions about his representation of Hutchinson.

Elections LLC has received more than $1.6 million this year, including $1 million that Trump’s Make America Great Again PAC paid in May to an entity called, E LLC Iolta, which shares a Washington, DC, address with the firm, a recent filing shows.

The Daily Beast first reported the $1 million May payment to E LLC Iolta. CNN has requested comment from Elections, LLC.

The CNN tally examined legal fees paid in this calendar year by the Make America Great Again PAC and Trump’s main political vehicle, Save America PAC. The filings do not show which specific lawyers in the firm received payments, and the filings don’t explain what the law firms did for the Trump committees beyond the broad description of “legal consulting” or “legal expenses.”

It’s impossible to tell from the filings with the Federal Election Commission whether payments to these firms specifically covered work representing witnesses before

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July 27, 2022 by LAW
December 2024
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