NEW YORK, June 28 (Reuters) - Buchanan Ingersoll & Rooney
has agreed to pay $60 million to settle claims stemming from its
representation of the bankrupt Adelphia Communications Corp.
The proposed settlement would include $20 million for the
Adelphia Recovery Trust, which is pursuing claims on behalf of
creditors in bankruptcy court. Another $40 million would be
divided between the trust and investors who brought separate
lawsuits following a binding mediation.
"Agreeing to settle the matter allows us to focus on our
clients and our goals," Tracie Gliozzi, a spokeswoman for
Buchanan Ingersoll, said in a statement. "We are pleased to put
this behind us."
Buchanan Ingersoll, the primary legal counsel to Adelphia,
was one of several advisers and banks that were engulfed in
litigation following the failure of Adelphia, which filed for
bankruptcy in 2002 amid an accounting scandal.
The recovery trust held off on suing Buchanan Ingersoll
after the firm in 2004 agreed to toll the statute of
limitations. The firm also faced several lawsuits that accused
the firm of assisting in the preparation and dissemination of
false and misleading information about Adelphia to investors.
The money adds to the pile collected by the Adelphia
Recovery Trust to date. Deloitte & Touche agreed to a $167.5
million settlement in 2007. More than 20 banks agreed to a $175
million settlement in 2010.
The settlement with Buchanan is subject to the approval of
U.S. Bankruptcy Judge Robert Gerber in Manhattan. The trust said
Wednesday that if the settlement is approved it would seek "a
substantial portion, if not all," of the $40 million to be
divided between it and litigants in investor litigation.
It is not clear how many investors will apply to compete for
that money in the mediation.
(Reporting by Nate Raymond)
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