Refco Must Pay For Customer Suit Against Affiliate

Law360, New York (September 29, 2006, 12:00 AM EDT) -- A federal judge has ordered Refco Inc. to pay more than $4.2 million in legal fees to securities customers who argued they contributed to Refco’s reorganization process by suing one of Refco’s affiliated debtors.

As a result of U.S. Bankruptcy Judge Robert Drain’s Wednesday order, Refco will pay nine law firms $3,946,303.85 in fees and $330,455.57 in expenses.

The lion’s share of that total—almost $1.4 million—will go to Cleary Gottleib Steen & Hamilton LLP. Cleary Gottleib represents Inter Financial Services Ltd.

Akin Gump Strauss Hauer &...
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