Howrey Trustee Objects To Class Action Against Ex-Partners

Law360, New York (November 15, 2012, 10:39 PM EST) -- The Chapter 11 trustee in the Howrey LLP bankruptcy case on Thursday pressed a California judge to stop a proposed class action targeting hundreds of equity security holders of the defunct firm, saying the suit interferes with the estate's own recoveries and violates the automatic stay.

The trustee, Allan B. Diamond of Diamond McCarthy LLP, said the suit, which claims the equity holders funneled the firm's funds to themselves in the years leading up to the bankruptcy, "seeks to hijack these bankruptcy proceedings and subsume the...
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