X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The fees may be good, but lawyers at O’Melveny & Myers have had a rough few weeks representing one of the nation’s largest failed subprime lenders, New Century Financial Corp. Its outside restructuring attorneys at O’Melveny misled a bankruptcy examiner about funds that may belong to creditors, according to a blistering report by the examiner unsealed this month. And the bank’s outside counsel had to apologize to U.S. Bankruptcy Judge Kevin Carey for a discovery “mishap” in which more than 700,000 e-mails weren’t turned over to the bankruptcy examiner. O’Melveny blamed an “outside vendor” for the problem in a Jan. 14 filing. “The debtors recognize that such errors, even if unavoidable in the context of such a process, cause inconvenience to participants in proceedings of this nature, and accept full responsibility,” wrote O’Melveny lawyers Ben Logan and Suzzanne Uhland, along with local counsel in Delaware. Bankruptcy examiner Michael Missal’s report and O’Melveny’s response were submitted to Carey last fall and unsealed Jan. 17. Missal, a Kirkpatrick & Lockhart Preston Gates Ellis partner in Washington, says O’Melveny attorneys “were not forthright” in their dealings with him, causing the examiner to needlessly spend more than $800,000, plus whatever amount O’Melveny billed for litigating the issue. All told, O’Melveny has charged more than $12 million in six months of work on New Century’s wide-ranging legal issues, according to the firm’s fee applications.
Dan Levine is a reporter with The Recorder , an ALM publication.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.