Buchanan Ingersoll & Rooney was Adelphia Communications Corp.’s primary legal counsel when the company suffered from an accounting scandal and went bankrupt in 2002. After the dust settled, several of Adelphia’s advisers and banks were hit with a tidal wave of litigation, and Buchanan Ingersoll was no exception. As of Thursday, however, the law firm has reached a $60 million settlement on these claims.
Of that amount, $20 million is going to the Adelphia Recovery Trust, which represents creditors in bankruptcy court. The other $40 million will be divided between the trust and investors who brought separate lawsuits. The trust said Wednesday that if Bankruptcy Judge Robert Gerber approves the settlement, it will seek “a substantial portion, if not all” of the $40 million.