GE, Law Firm Put Up $32.5M To Duck Petters Clawback Suits

Law360, New York (May 31, 2012, 11:18 PM EDT) -- General Electric Capital Corp. and law firm Fredrikson & Byron PA agreed Wednesday to cough up a collective $32.5 million to settle claims in Minnesota bankruptcy court that they profited from businessman Thomas Petters' $3.7 billion Ponzi scheme.

Douglas Kelley, the Chapter 11 trustee of Petters Co. Inc., asked a Minnesota bankruptcy judge to approve a $19 million settlement with GECC and a $13.5 million settlement with Fredrikson & Byron, which faced breach of fiduciary duty claims stemming from its counsel of the company during the...
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