Lawyers to Collect $2 Billion in Fees From Lehman Bankruptcy
Lehman filed for Chapter 11 protection on Sept. 15, 2008, the largest such filing in history. By July, according to the publication, fees charged to Lehman's U.S. estate stood at $917 million. They should top $1 billion this month. Add to that the expenses for unwinding the European arm estimated at almost $900 million, and $2 billion is very much in reach.
But while some claim the services are given at a discount rate, the FT adds that at the time, former "pay czar" Kenneth Feinberg pared back fees by $5.2 million for reasons such as incomplete breakdowns of expenses or overcharging for overtime meals. So, even at a discount, no doubt all firms wanted a piece of this huge fee pie.