The joint venture between LeClairRyan and alternative services provider UnitedLex was intended to help keep the law firm afloat, but the combination “only served to plunge LeClairRyan further into insolvency,” according to the Chapter 7 trustee for the bankrupt law firm.
An Oct. 26 complaint by trustee Lynn Tavenner alleges the joint venture, ULX Partners, was given “unprecedented control” over a wide range of law firm operations that the alternative services provider used to benefit itself over other creditors.
Tavenner is seeking to recover more than $42 million from UnitedLex, report Bloomberg Law and Law360.
