REID COLLINS FILES $300 MILLION LEGAL MALPRACTICE SUIT AGAINST BROWN RUDNICK
On February 5, 2020, Reid Collins filed an amended complaint on behalf of the LB Litigation Trust against Brown Rudnick LLP for legal malpractice and breach of fiduciary duty. The LB Litigation Trust alleges that Brown Rudnick botched the prosecution of a $300 million preference claim by failing to prove that the debtor, Lyondell Chemical Company, was insolvent at the time of the preferential transfers. Specifically, as alleged in the complaint, Brown Rudnick inexplicably missed $8 billion in liabilities owed by Lyondell that clearly rendered the debtor insolvent. Brown Rudnick also failed to submit an expert opinion on Lyondell’s insolvency and misunderstood well-established law on how to prove a preferential transfer under the Bankruptcy Code. The complaint further alleges that Brown Rudnick internally acknowledged its mistakes but concealed its malpractice from the Trust.
Read complaint here.
Prior results do not guarantee a similar outcome.