Thelen Trustee Seeks Rulings in 4 Partner Clawbacks

March 13, 2014 – In The News

Yann Geron was featured in the Law360 article “Thelen Trustee Seeks Rulings in 4 Partner Clawbacks.” While the full text can be found in the March 13, 2014, issue of Law360, a synopsis is noted below.

The trustee overseeing the liquidation of Thelen LLP’s estate has urged a New York bankruptcy court to rule on when four former Thelen partners being sued in clawback litigation received allegedly fraudulent payments.

Chapter 7 Trustee Yann Geron said in court filings against the four ex-Thelen partners that they received certain payments and loan advances after the firm had voted to dissolve itself and was insolvent, making them fraudulent transfers.

Geron also contends that the payments did not align with the terms of the partnership agreements the attorneys had signed upon being hired, resulting in the partners receiving more compensation than they were entitled to under the agreement.

“Thelen received no value for the transfers sought to be recovered as they constitute excess amounts received by the defendants over and above the compensation set forth in the partnership agreements,” Geron said in a motion for partial summary judgment.

Geron has been suing former partners of the firm for compensation he says they should not have received and has reached agreements with many.

He has also been targeting law firms that hired former Thelen partners for proceeds of client matters that began at the Thelen before it dissolved.