A LeClairRyan Trustee Settles With Former Firm Leaders For $10 Million
The trustee overseeing the bankruptcy liquidation of LeClairRyan has just scored millions of dollars more in her hunt for cash to pay back creditors of the collapsed Richmond law firm.
A nearly $10 million settlement was struck Monday between trustee Lynn Tavenner and two dozen of the firm’s former directors, officers and shareholders, including co-founder and namesake Gary LeClair, as well as former CEOs David Freinberg and Erik Gustafson.
As approved by Judge Kevin Huennekens on Monday, the settlement money will come from a management liability insurance policy LeClairRyan had in place at the time of its collapse in 2019. It includes an initial payout to the bankruptcy estate of $9.47 million plus additional expenses of no more than $525,000.
