Charity Donors Say McGuireWoods Abandoned Them

Law360, New York (April 21, 2011, 2:23 PM EDT) -- Former National Heritage Foundation donors sued McGuireWoods LLP in Virginia federal court Tuesday, alleging the firm threw unsecured creditors like them under the bus when it drafted the foundation's reorganization plan.

McGuireWoods, as counsel for the unsecured creditors committee during the foundation's bankruptcy, allegedly shielded itself from liability, ignored the interests of the donor plaintiffs and crafted a reorganization plan that allowed the foundation to pay off its creditors with money donors had given up to set up their own charitable funds, according to a complaint...
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