Kaye Scholer Says Fund's Claims Imperil Deal In GSC Row

Law360, Chicago (April 16, 2013, 4:38 PM EDT) -- Kaye Scholer LLP on Monday pushed for approval of its $1.5 million settlement with the government over alleged ethics violations in GSC Group Inc.’s bankruptcy, but the firm suggested it will back out of the deal if it is forced to defend related claims from an objecting hedge fund.

Black Diamond Capital Management LLC, which purchased GSC out of bankruptcy in 2011, objected last month that the law firm’s settlement with the U.S. Trustee’s Office goes “a step too far” in foreclosing third parties like the...
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