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Dewey trustee sues to recover money from creditors

The firm allegedly paid $5.7 million to certain creditors even though it was already insolvent

Dewey & LeBoeuf’s liquidation trustee is suing for the return of $5.7 million that the firm paid to certain creditors shortly before filing for bankruptcy.

Alan Jacobs argues that Dewey gave the money to Bank of America, several law firms and additional vendors in the 90 days before its Chapter 11 bankruptcy filing, even though it was already insolvent. Bankruptcy code stipulates that no creditor is entitled to preferential payment in the 90 days before a debtor seeks bankruptcy protection.

Alanna Byrne

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