Firm DQ For Bad Disclosure In Del. Bankruptcy Case Upheld

By Rose Krebs (October 1, 2021, 12:55 PM EDT) -- A federal judge on Wednesday affirmed Delaware bankruptcy court decisions that disqualified and sanctioned a law firm for failing to disclose it was using a "fictitious trade name" when it served as special counsel to debtor entities that held ownership stake in an office building.

In a 58-page opinion, U.S. District Judge Colm F. Connolly affirmed decisions by the bankruptcy court that sanctioned Rubin & Rubin PA by ordering it to pay $55,000 to defendants in an adversary suit and disqualifying the firm and disgorging any fees it was paid or owed for its work as special counsel.

The bankruptcy court...

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