Kirkland Can't Duck Indalex Suit Over $76M Dividend Fraud

Law360, Wilmington (October 5, 2012, 7:53 PM EDT) -- A Delaware bankruptcy judge on Tuesday refused to dismiss a malpractice suit alleging Kirkland & Ellis LLP advised Indalex Inc. on a wasteful $76 million dividend without disclosing that some of the firm’s partners were invested in private equity funds that owned the company and stood to gain from the transaction.

The Chapter 7 trustee for the defunct aluminum processor hit Kirkland in May with an adversary suit after discovering that Douglas C. Gessner, the firm’s point man for Indalex, and other partners were invested in...
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