Facts

On Dec. 28, 2008, Debtor Heller Ehrman LLP filed for Chapter 11 bankruptcy. In 2010, the bankruptcy court confirmed debtor's plan of liquidation. In 2011, the debtor filed a professional negligence claim against Greenberg Traurig LLP in connection with Greenberg's representation of debtor leading to and after debtor's dissolution and leading up to debtor's bankruptcy filing.

DEBTOR'S CONTENTIONS:
Debtor contended that defendant committed legal malpractice by failing to include advice related to bankruptcy/creditors' rights issues. Debtor contended that it was damaged by defendant's misconduct by failing to file for bankruptcy protection earlier.

DEFENDANT'S CONTENTIONS:
Defendant denied all allegations, claiming that its scope of engagement was much narrower than debtor alleged. Defendant contended that it was not required to advice debtor on bankruptcy/creditors' rights issues, and such, was not liable for any damages caused by debtor's failure to file for bankruptcy protection earlier.

Result

The parties agreed to settle their dispute for $4.9 million. The bankruptcy court subsequently approved the settlement.

Other Information

FILING DATE: Oct. 31, 2011.